Singapore economy expands 6.0% on AI, cites Mideast risks

Singapore’s economy expanded at a significantly faster pace than initially estimated in the first quarter of 2026, driven by robust demand linked to artificial intelligence, even as the government warned that the Middle East conflict has sharply increased risks to the outlook for the rest of the year.

Gross domestic product grew 6.0 percent in the January to March period compared with the same quarter a year earlier, according to data released Monday by the Ministry of Trade and Industry. That figure was well above the advance estimate of 4.6 percent released last month. On a seasonally adjusted quarter on quarter basis, the economy expanded by 1.0 percent, reversing the preliminary reading of a 0.3 percent contraction.

Despite the stronger than expected start to the year, the ministry maintained its full year growth forecast for 2026 at 2.0 to 4.0 percent. It said the conflict in the Middle East has significantly raised downside risks and that the external demand outlook has weakened compared with its assessment in February. The ministry said it will continue to monitor developments and adjust the forecast if necessary.

The first quarter performance was supported by strong...