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Singapore Economy Beats Expectations With 6% Growth

Prime Highlights

  • Singapore’s economy grew 6.0% in the first quarter of 2026, exceeding earlier estimates.
  • Strong AI-related demand boosted manufacturing, exports and financial sector growth.

Key Facts

  • Singapore is a major global trade and financial hub with an economy heavily dependent on international markets.
  • Non-oil domestic exports rose 9.6% in the first quarter, while electronics exports increased by 57.8%.

Background

Singapore’s economy expanded more strongly than expected in the first quarter of 2026, supported by growth in trade, manufacturing and financial services. Official data showed the economy grew 6.0% compared with the same period last year, exceeding earlier estimates of 4.6%. On a quarter-on-quarter basis, the economy also returned to growth with a 1.0% increase after initial estimates had suggested a decline.

The strong performance came mainly from wholesale trade, manufacturing and finance-related sectors. Officials said rising demand linked to artificial intelligence technologies played a major role in supporting business activity and exports during the period.

Despite the stronger figures, authorities warned that the economic outlook has weakened because of global uncertainties. Officials said risks to future growth have increased, particularly due to the ongoing Middle East conflict, which has created uncertainty around global inflation, energy prices and supply chains.

Singapore’s economy, which is centered on commerce, is nonetheless vulnerable to changes in international markets. Authorities stated that they will continue monitoring economic developments and may review growth expectations later in the year if conditions change further. The current annual growth forecast remains at 2.0% to 4.0%.

Data also showed that Singapore’s non-oil domestic exports increased by 9.6% during the first quarter. Exports of electronics were especially robust, increasing by 57.8%. As a result, the government raised the forecast of export growth to between 3.0% and 5.0%.

The authorities added that potential uncertainties arising from the United States’ trade policy, as well as international tensions, still pose a risk to the economy.