For the first half of the year, GDP growth was 6.1 percent, the Trade Ministry said.
The ministry upgraded its growth forecast for this year to 4.5 to 5.5 percent, from 2.0 to 4.0 percent, saying the impact of the Middle East war had been less severe than initially feared while the global AI investment boom had been stronger than expected.
“Against this backdrop, the 2026 outlook for sectors of the Singapore economy that are linked to the AI-driven technology cycle has improved, although that for sectors directly affected by supply disruptions arising from the Middle East conflict remains weak,” the ministry said.
On a quarter-on-quarter, seasonally adjusted basis, gross domestic product expanded by 1.4 percent in the April-June period, compared with an advance estimate of a 1.1 percent growth.
In a separate statement, Enterprise Singapore upgraded its forecast for growth this year in non-oil domestic exports to 14 to 16 percent, from 3 to 5 percent previously.
“The global economy has remained more resilient than expected, bolstered by the sustained AI-related demand and capex spending,” Enterprise Singapore said, but added that downside risks included the Iran war and the new round of US tariffs.
The Monetary Authority of Singapore has said it expects growth to stay firm for the rest of 2026, although it has flagged the sustainability of the AI investment boom as a major risk.
The central bank unexpectedly tightened monetary policy in late July, citing persistent inflationary risks as the Middle East conflict keeps energy cost pressures elevated.
Also last month, the government announced a S$900 million (HK$5.5 billion) support package to help households and businesses cope with high energy prices, on top of the almost S$1 billion announced in April. (Reuters)
