Singapore Economy Contracts for First Time Since 2022

Singapore’s economy contracted 0.3% quarter-on-quarter in the first quarter of 2026, reversing from a 1.3% expansion in the previous quarter, according to advance estimates.

This marked the first contraction since Q4 2022, but smaller than the expected 0.5%.

Sectorally, goods-producing industries led the decline, falling 3.1% QoQ after a 3.3% expansion in Q4, with manufacturing shrinking sharply by 4.9% (vs 4.5%), marking a significant reversal.

Services expanded at a slower pace of 0.6% QoQ, down from 1.0%.

Within this, wholesale & retail trade and transportation & storage rose 1.0% (vs 1.8%), while accommodation & food services, real estate and other services edged up 0.1% (vs -0.4%).

Meanwhile, information & communications, finance & insurance and professional services contracted 4.0%, reversing from a 4.6% expansion in the previous quarter.

In contrast, construction provided support, growing 3.7% (vs 0.2%), the only major sector to accelerate.