Singapore's 2026 growth outlook upgraded after strong Q2 GDP

Macquarie raised its 12‑month target for Singapore’s Straits Times Index to 6,000, citing a “healthy cocktail” of macro‑economic tailwinds, a 5.7% year‑on‑year Q2 2026 GDP expansion and robust demand for AI‑related semiconductors. The firm highlighted the banking sector’s benefit from rising domestic interest rates and government market‑support initiatives, naming UOB, OCBC and other large‑cap stocks as top picks.

Economists also lifted Singapore’s 2026 growth forecast, with many now expecting 4‑5% full‑year growth after the 5.7% Q2 surge. Analysts pointed to strong manufacturing (12.2% YoY growth), continued AI‑driven trade, solid construction activity and ample fiscal support as key drivers. While some caution remains over external risks such as geopolitical tensions, the consensus is that the economy will maintain momentum into the second half of the year.