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Singapore's economic growth slows to 5.7% in Q2 2026

Singapore's economy grew 5.7% year-on-year in the second quarter of 2026, slowing from the previous quarter.

A view of Marina Bay, Singapore. (Photo: Xinhua/VNA)
A view of Marina Bay, Singapore. (Photo: Xinhua/VNA)

​Singapore (VNA) – Escalating geopolitical tensions in the Middle East weighed on Singapore's externally oriented economy, tempering the benefits from robust AI-related demand, according to advance estimates released by the Ministry of Trade and Industry (MTI) on July 14.

Singapore's economy grew 5.7% year-on-year in the second quarter of 2026, slowing from the previous quarter.

The manufacturing sector grew 12.2%, accelerating from an 8% expansion in the previous quarter. Growth in the manufacturing sector was largely driven by output increases in the electronics and precision engineering clusters due to strong artificial intelligence-related demand for semiconductors and semiconductor manufacturing equipment, said MTI.

However, the chemicals cluster contracted due to feedstock disruptions from the Middle East conflict. The biomedical manufacturing cluster also shrank.

Last month, Singaporean Prime Minister Lawrence Wong warned that economic growth could slow while inflation may pick up in the second half of the year as the impact of escalating conflicts deepens.

The Singaporean Government has nevertheless maintained its 2026 economic growth forecast at 2–4%./.

​

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