DBS economists Radhika Rao and Mo Ji forecast accelerated growth in Singapore’s Gross Domestic Product (GDP) in the second quarter of 2026 at 5.8% year-on-year and 1.5% quarter-on-quarter, on a seasonally adjusted basis, slightly below Q1 but still buoyant. They cite powerful manufacturing and wholesale trade for demand for AI-related electronics, hearty newfangled services and construction, and expect the country’s non-oil exports to post a fourth straight month of double-digit growth despite a slowdown since May.
The demand for artificial intelligence underpins growth prospects
“We expect Singapore’s preliminary GDP growth estimates for Q2 2026 to be 5.8% year-on-year, 1.5% quarter-on-quarter, remaining resilient compared to 6.0% year-on-year, 1.0% quarter-on-quarter in Q1 2026.”
“Manufacturing accelerated and wholesale trading performed well despite some moderation, driven by strong global demand for artificial intelligence (AI)-related electronics.”
“Modern services remained resilient, supported by continued momentum in the financial sector with increased securities trading activity and credit growth.”
“The ongoing construction boom has also strengthened the country’s resilience.”
“We see Singapore’s domestic non-oil exports (NODX) growing at a double-digit rate for the fourth month in a row, albeit at 25.0% year-on-year in June compared to 38.4% year-on-year in May.”
(This article was created with the assist of an artificial intelligence tool and has been reviewed by an editor. Find out more.)
