Singapore Raises 2026 Growth Forecast on AI-Driven Boom

Singapore raised its 2026 economic growth forecast on Tuesday, August 11, 2026, after final data showed the economy expanded faster than initially estimated in the second quarter, driven by a stronger-than-expected global boom in artificial intelligence investment. The Ministry of Trade and Industry (MTI) now expects gross domestic product to grow between 4.5% and 5.5% for the full year, a significant upgrade from its previous forecast of 2.0% to 4.0% issued in May.

The revised outlook came as official figures revealed that GDP grew 5.9% year-on-year in the April-June quarter, surpassing the government's advance estimate of 5.7%. On a quarter-on-quarter, seasonally adjusted basis, the economy expanded by 1.4%, also beating the earlier projection of 1.1%. For the first half of 2026, GDP growth averaged 6.1%.

The MTI stated that the global AI investment boom has been stronger than anticipated, boosting trade and offsetting the economic drag from the ongoing conflict in the Middle East. "For the rest of the year, a further acceleration in AI-related capital expenditure is expected to lift the growth prospects of economies plugged into the global technology value chain," the...