Singapore Revises Up Q3 GDP Growth, Raises 2025 Outlook

Singapore’s economy grew by 5.4% year-on-year in the third quarter of 2026, exceeding forecasts for a 5% expansion but slowing from an upwardly revised 6.2% growth in Q2, advance estimates showed. The slowdown marked the weakest annual growth since Q3 2025, driven by a moderation in goods-producing industries (7.3% vs 10.9% in Q2), as manufacturing growth eased to 7.5% from 12.9%, partly offset by faster expansion in construction (8.8% vs 6.1%). Activity also slowed in information and communications, finance and insurance, and professional services (4.3% vs 5.1%) and accommodation and food services, real estate, administrative and support services, and other services industries (2.1% vs 2.4%). Meanwhile, services-producing industries maintained growth at 5.2%, supported by faster expansion in wholesale and retail trade and transportation and storage (8% vs 6.9%). Quarterly, the GDP expanded by 1.1%, the softest since Q1 2025 and easing from an upwardly revised 1.5% growth in Q2 2026.

Singapore’s economy grew by 5.9% year-on-year in the second quarter of 2026, slowing from a 6.3% expansion in Q1, which was the strongest annual growth since Q3 2024, but exceeded advance estimates of 5.7%. Growth was driven by manufacturing, wholesale trade and finance & insurance, with robust global AI-related demand boosting electronics and precision engineering, as well as machinery, equipment and supplies in wholesale trade. Goods-producing industries expanded 10.5% (vs 7.9% in Q1), as manufacturing growth accelerated to 12.5% from 7.3%. Construction growth, however, slowed to 5.8% from 12.9%, as well as services-producing industries (4.9% vs 6.3%), despite stronger finance & insurance activity. On a seasonally adjusted quarterly basis, GDP grew 1.4%, up from 1.2% in Q1, bringing first-half growth to 6.1%. Reflecting stronger-than-expected H1 performance and an improved outlook for AI-related capital spending, MTI upgraded its 2026 GDP growth forecast to 4.5%-5.5% from 2%-4%.

Singapore’s economy advanced 5.7% yoy in Q2 2026, slowing from an upwardly revised 6.3% expansion in Q1, which was the strongest annual growth since Q3 2024, but remaining above estimates of 5.5%, according to preliminary estimates. Growth was mainly supported by the goods-producing sectors (10.4% vs 8.4% in Q1), with manufacturing output surging 12.2%, accelerating from 8.0% in the previous quarter due to strong AI-related demand. Construction growth eased (6.2% vs 12.9%). Meanwhile, the services sector moderated (4.6% vs 6.2% in Q1), mainly reflecting slower growth in wholesale & retail trade and transportation & storage (6.3% vs 9.3%), information & communications, finance & insurance, and professional services (3.9% vs 4.5%), as well as accommodation & food services, real estate, administrative & support services, and other services industries (2.7% vs 3.2%). Quarterly, GDP grew 1.1%, following an upwardly revised 1.3% expansion in Q1, marking the softest growth since Q1 2025.