Singapore raised its economic growth forecast for 2026 because it performed better than expected in the first half of the year, but some officials warned that the global economy is still at risk. According to revised data released by the Ministry of Trade and Industry on Tuesday, GDP grew 5.9% year-on-year in the second quarter. The department's preliminary estimate for July was 5.7% growth in the second quarter and 6.3% in the first quarter. GDP grew 6.1% year over year in the first half of the year. The department raised its 2026 growth forecast to 4.5%-5.5% from the 2.0%-4.0% forecast previously. The country's economy grew 5.0% in 2025. The Ministry of Trade and Industry attributed this upgrade to better-than-expected performance in the first half of the year and an improvement in the outlook for the rest of the year, driven by an acceleration in global AI-related capital expenditure. However, the Ministry of Trade and Industry warned that risks include a possible escalation of the Middle East conflict, which could trigger another sharp rise in the prices of energy commodities and other key intermediate inputs. “The resulting rise in inflationary pressure and the tightening of the global financial environment may curb global growth,” the department said. After seasonal adjustments, GDP grew 1.4% month-on-month in the second quarter. In contrast, the initial value increased by 1.1%, and the revised increase in the first quarter was 1.2%.

Singapore raised its economic growth forecast for 2026 because it performed better than expected in the first half of the year, but some officials warned that the global economy is still at risk. According to revised data released by the Ministry of Trade and Industry on Tuesday, GDP grew 5.9% year-on-year in the second quarter. The department's preliminary estimate for July was 5.7% growth in the second quarter and 6.3% in the first quarter. GDP grew 6.1% year over year in the first half of the year. The department raised its 2026 growth forecast to 4.5%-5.5% from the 2.0%-4.0% forecast previously. The country's economy grew 5.0% in 2025. The Ministry of Trade and Industry attributed this upgrade to better-than-expected performance in the first half of the year and an improvement in the outlook for the rest of the year, driven by an acceleration in global AI-related capital expenditure. However, the Ministry of Trade and Industry warned that risks include a possible escalation of the Middle East conflict, which could trigger another sharp rise in the prices of energy commodities and other key intermediate inputs. “The resulting rise in inflationary pressure and the tightening of the global financial environment may curb global growth,” the department said. After seasonal adjustments, GDP grew 1.4% month-on-month in the second quarter. In contrast, the initial value increased by 1.1%, and the revised increase in the first quarter was 1.2%.