Strong AI-driven expansion and private investment led Singapore to revise its 2026 GDP growth outlook upward from 2-4%.
Singapore’s economy expanded 6.1% year-on-year in the first half of 2024, driven by robust AI-related demand and private investment in machinery and equipment. The government raised its 2026 growth forecast to 4.5-5.5%, up from 2-4%, reflecting sustained momentum despite energy sector headwinds.
Economists noted that AI demand offset weaker oil-related performance, while private investment contributed 1 percentage point to H1 GDP growth. Exports grew at a double-digit pace, though higher imports slightly reduced net export contributions in Q2.
Growth is expected to moderate in H2 2026 due to base effects in the electronics sector. The revised forecast aligns with expectations of continued, albeit slower, expansion.