Singapore raises 2026 GDP growth forecast to 4.5%-5.5% on AI spending
Singapore's Ministry of Trade and Industry raised its economic growth forecast for 2026 to 4.5%-5.5% on Tuesday, up from a previous projection of 2%-4%, citing stronger-than-expected AI-related capital spending and a milder impact from Middle East tensions than feared.
The economy expanded 5.9% in the second quarter, slightly above the advance estimate of 5.7% but down from 6.3% growth in the first quarter. Manufacturing, wholesale trade and finance sectors led the gains, driven by robust global demand for electronics and precision engineering tied to AI investment, Channel NewsAsia business reports.