Singapore Q1 GDP Growth Revised Sharply Higher

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.

Singapore’s economy expanded 6.0% yoy in Q1 2026, exceeding flash estimates of 4.6% and accelerating from a 5.0% rise in Q4. It marked the strongest annual growth since Q3 2024, supported by a pick-up in construction output amid strong activity across both public and private sectors. The services sector also grew faster (5.7% vs 4.8%), led by wholesale and retail trade, accommodation, and finance & insurance. Manufacturing activity stayed resilient despite slower momentum (7.9% vs 9.6% in Q4), mainly driven by gains in electronics and precision engineering. On a quarterly basis, the economy grew 1.0%, reversing the advance estimate of a 0.3% fall and marking a second straight quarterly rise. However, the pace slowed sharply from the 5.0% surge in Q4, due to the impact of the Middle East war. Singapore kept its 2026 GDP growth forecast at 2.0% to 4.0%, citing downside risks from global and domestic developments and signaling that the outlook could be revised if conditions worsen.

Singapore’s economy grew 4.6% year-on-year in the first quarter of 2026, easing from 5.7% in the previous quarter, and below expectations of 5.4%, advance estimates showed. Growth remained resilient but showed signs of moderation, with risks emerging from the US-Israel-Iran conflict that began in late February. Manufacturing growth slowed sharply to 5.0% from 11.4% in Q4, marking the steepest deceleration among major industries. Services also showed softer momentum, with growth at 4.7% from 4.8%, as wholesale & retail trade and transportation & storage edged down to 6.7% (vs 6.8%), and accommodation & food services, real estate and other services eased to 2.3% (vs 2.9%). In contrast, construction was the only sector to accelerate, rising 9.0% from 4.6%. On a quarterly basis, GDP shrank 0.3%, marking the first contraction since Q4 2022, but a smaller decline than the expected 0.5%.