Economists raise Singapore GDP growth forecast to 5% — Channel NewsAsia
Private-sector economists have raised their forecast for Singapore's economic growth in 2026 from 3.5% to 5%. The estimate was included in the latest survey of professional forecasters conducted by the Monetary Authority of Singapore (MAS), Channel NewsAsia reports.
The study involved 21 economists and analysts. Their forecast is slightly below the expectations of Singapore's Ministry of Trade and Industry, which projects economic growth of 5.5% this year.
GDP dynamics
In the second quarter of 2026, Singapore's economy grew by 5.9% year on year. This exceeded the previous forecast of survey participants, who had expected growth of 4.3%. In the first quarter, the country's GDP increased by 6.3%.
For the third quarter, respondents forecast annual growth of 4.6%, and for the final quarter of the year, 3.6%. In 2027, economists expect growth to slow to 3.1%.
More current news is available on the UA.News Telegram channel Telegram.
Inflation and monetary policy
The median forecast for headline inflation in 2026 was reduced from 2.3% to 2.1%. The estimate for core inflation, which excludes housing and private transport costs, was lowered from 2% to 1.9%.
In the third quarter, economists expect headline inflation to stand at 2.5% and core inflation at 2.4%. In the second quarter, these indicators were 1.8% and 1.5%, respectively, below respondents' previous estimates.
Among the risks to Singapore's economy, survey participants most often cited an escalation or prolonged conflict in the Middle East, as well as a possible collapse of the artificial intelligence bubble with consequences for financial markets. At the same time, all respondents identified a sustained revival of the technology cycle driven by AI as a factor supporting the economy.
Forty-five percent of respondents expect MAS to tighten monetary policy in October by increasing the slope of the Singapore dollar nominal effective exchange rate policy band. In the previous survey, 30% of respondents expected such a move.
