Singapore raises 2026 growth forecast

Singapore has raised its economic growth forecast for 2026 to between 4.5% and 5.5%, supported by a boom in artificial intelligence investments and a diminished impact of the war in the Middle East on economic activity. This comes after the GDP grew by 5.9% in the second quarter of the year, with expectations of reduced risks linked to the conflict, while growth remains strong thanks to new capital inflows and a rebound in the construction sector. However, there are warnings about the sustainability of the AI boom and the effects of rising inflation. The government aims to enhance economic stability through support packages and higher growth projections than before, with inflation expected to stay between 1.5% and 2.5%.

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