DBS maintains 2026 GDP growth forecast at 2.8% despite risks from Middle East tensions and energy disruptions.
Singapore’s economy grew 6.0% year-on-year in the first quarter of 2026, revised upward from an initial 4.6%, driven by stronger manufacturing, construction, and services sectors. The expansion was supported by robust AI-driven exports and solid domestic activity, offsetting energy disruption risks tied to Middle East conflicts.
The revised growth outpaced advance estimates and marked a sequential improvement from a 0.3% quarter-on-quarter contraction in the prior period. While outward-oriented sectors remain resilient, DBS cautions that external uncertainties could lead to uneven growth as the year progresses.
DBS kept its 2026 GDP forecast unchanged at 2.8%, citing balanced risks amid geopolitical tensions and potential energy supply shocks. The bank noted Singapore’s economic strength but warned of ongoing volatility in global trade and energy markets.