Singapore GDP rises 5.7% in Q2 as AI‑driven manufacturing surges

Advance estimates show Singapore’s economy expanded 5.7% year‑on‑year in the second quarter of 2026, with a 1.1% sequential gain. Manufacturing output jumped 12.2% yoy, propelled by strong AI‑related demand for semiconductors and equipment, while overall goods‑producing industries grew 10.4% yoy.

The growth boost follows a 6.0% yoy increase in Q1, but the Ministry of Trade and Industry warned that ongoing Middle‑East conflicts involving the US, Israel and Iran could dampen future performance, keeping the full‑year GDP forecast at 2‑4%. The government noted that geopolitical instability may affect energy prices, supply chains and hiring in the tech sector, offsetting the AI export gains.

Services grew more modestly at 4.6% yoy, and construction slowed, shrinking quarter‑on‑quarter. The report made no reference to digital assets, underscoring that crypto remains peripheral to Singapore’s macro‑economic outlook.