Singapore posts 5.7% year‑on‑year GDP growth in Q2 2026

Singapore’s economy expanded 5.7% year‑on‑year in the second quarter of 2026, outpacing the 5.5% forecast. The surge was led by a sharp rebound in manufacturing, which grew 12.2% YoY and pushed the goods‑producing sector up 10.4% YoY. Demand for AI‑related semiconductors and related equipment underpinned the manufacturing gains.

The services sector slowed, growing 4.6% YoY versus 6.2% in Q1, and construction output fell 2.1% quarter‑on‑quarter after a strong first‑quarter expansion. Inflation held at 1.8% in May, the highest since September 2024, while the Monetary Authority of Singapore kept its policy focus on the exchange‑rate band rather than interest rates. Analysts note that ongoing Middle‑East tensions could temper future growth, even as trade activity and domestic construction remain supportive.

Singapore’s central bank is set to announce its next monetary‑policy decision later this month, with full‑year GDP forecasts unchanged at 2‑4% amid heightened geopolitical risk.