Singapore Q2 GDP Jumps 5.9%, 2026 Outlook Raised on AI Investment Surge

Singapore's economy expanded 5.9% in the second quarter of 2026 compared with a year earlier, according to official data released on Tuesday. The figure came in above the government's advance estimate of 5.7% growth.

The Trade Ministry reported that gross domestic product grew 6.1% in the first half of the year. On a quarter-on-quarter, seasonally adjusted basis, the economy grew 1.4% in the April-June period, also beating the earlier estimate of 1.1%.

In a significant revision, the ministry upgraded its full-year growth forecast for 2026 to a range of 4.5% to 5.5%, up from a previous projection of 2.0% to 4.0%. The ministry attributed the improved outlook to a stronger-than-expected global surge in artificial intelligence investment, while noting that the economic impact of the Middle East conflict has been less severe than initially feared.

"Against this backdrop, the 2026 outlook for sectors of the Singapore economy that are linked to the AI-driven technology cycle has improved, although that for sectors directly affected by supply disruptions arising from the Middle East conflict remains weak," the ministry said.

In a separate announcement, trade agency Enterprise Singapore raised its forecast for non-oil domestic export growth this year to 14% to 16%, a substantial jump from the previous estimate of 3% to 5%.