Singapore raises 2026 GDP growth forecast amid AI boom

Singapore has significantly raised its 2026 economic growth forecast to a range of 4.5%–5.5%, up from the previous estimate of 2%–4%. This marks the second upward revision by the Ministry of Trade and Industry this year.

The economic boost is largely attributed to the global artificial intelligence (AI) boom, which has driven strong demand for electronics, precision engineering, and technology-related hardware. In the second quarter, Singapore's economy expanded by 5.9% year-on-year, bringing first-half growth to 6.1%.

Key sectors contributing to this growth include manufacturing, which expanded by 12.5% in Q2, wholesale trade at 8.3%, and finance and insurance at 6.2%. The Ministry noted that the global AI investment cycle is providing substantial support to economies integrated into the technology supply chain.