Singapore revises its annual growth forecast sharply higher on AI-related boost

SINGAPORE, SINGAPORE - MAY 31: A view of Marina Bay Sands in Singapore on May 31, 2026. (Photo by Mustafa Hatipoglu/Anadolu via Getty Images)Anadolu | Anadolu | Getty ImagesSingapore on Tuesday sharply lifted its annual economic growth forecast, citing a stronger-than-expected performance in the first half and boost from AI-related sectors and exports. The Ministry of Trade and Industry said GDP growth for 2026 is now expected to come in at 4.5% to 5.5%, more than double the lower end of its previous forecast of 2%-4%. MTI added that that the economic impact of the U.S-Iran conflict has also been less severe than initially feared, pointing out that the drawdown of oil inventories and substitution to alternative energy sources have capped the rise in global energy prices.Singapore has upgraded its growth estimates for a second time this year. At the start of the year, MTI had estimated growth at 1%-3%. The announcement comes as Singapore reported revised growth numbers for the second quarter, with the city-state's economy expanding 5.9%, compared with 5.7% in advance estimates. The performance in the second quarter was mainly driven by the manufacturing, wholesale trade, as well as ...