DBS raises Singapore’s 2026 GDP growth projection to 4.3% from 2.8%, citing strong H1 performance and reduced stagflation risks.
DBS Group Research revised Singapore’s real GDP growth forecast for 2026 to 4.3%, up from 2.8%, and 3.0% for 2027, from 2.3%. The upgrade reflects resilience amid Middle East geopolitical tensions and solid first-half economic performance.
The bank noted reduced stagflationary risks due to a US-Iran de-escalation deal, easing supply chain pressures and supporting external demand. Growth momentum in AI, financial services, and construction also contributed to the optimistic outlook.
High base effects may temper growth in the coming quarters, but the overall trajectory remains positive. The revision aligns with Singapore’s ability to navigate recent geopolitical shocks.