Singapore’s economy expands 5.7% in the second quarter, beating expectations
Commercial buildings illuminated at dusk in Singapore on Monday, February 2, 2026. Photographer: SeongJoon Cho/Bloomberg via Getty Images
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Singapore’s economy grew by 5.7% in the second quarter, above market expectations, driven by strong growth in the manufacturing sector.
Growth was above the 5.5% expected by economists polled by Reuters, but below the revised 6.3% seen in the first quarter. A statement from the country’s Ministry of Trade and Industry.
While the goods sector grew by 10.4% from 8.4% in the previous quarter, the growth of the services sector slowed down to 4.6% from 6.2% in the first quarter.
“Singapore’s preliminary 2Q26 GDP estimates show the economy remains resilient despite the shock from tensions in the Middle East,” Chua Han Teng, senior economist at DBS Bank, said in a note.
He expects strong trade-related performance and headwinds from domestic construction to continue in the next few quarters, but warned that GDP will likely moderate going forward due to high base effects.
in Singapore in May Ministry of Trade and Industry He predicted GDP growth for 2026 would be between 2 percent and 4 percent, “although downside risks have increased significantly as a result of the US-Israel-Iran conflict.”
The preliminary GDP data comes as Singapore’s central bank prepares to announce its quarterly monetary policy decision later this month.
Rather than using interest rates, the city-state manages monetary policy by influencing the value of the Singapore dollar against the currencies of its major trading partners within an undisclosed trading band known as the Singapore dollar nominal effective exchange rate, or S$NEER.
The Singapore dollar weakened slightly after the data was released, trading at 1.294 against the dollar.
The GDP data also comes as inflation in the city-state remained steady at 1.8% in May, the highest since September 2024.
MAS said In the CPI statement We estimate that global energy prices remain high compared to 2025 and that full-year inflation will be in the range of 1.5%-2.5%.
