Singapore raises 2026 forecast to 4.5% to 5.5% on AI
Singapore just raised its 2026 growth outlook, now expecting the economy to grow 4.5% to 5.5% instead of the earlier 2% to 4%.
The big reason? Global excitement (and investment) around artificial intelligence is giving things a boost, and the Middle East conflict hasn't slowed things down as much as feared.
For context, Singapore's economy already grew by 5.9% in the second quarter of 2026, slightly more than expected.
Non-oil exports projected 14% to 16%
Non-oil domestic exports are also set to jump way higher than first thought, now projected at 14% to 16% growth for 2026 thanks to strong AI demand worldwide.
Even with supply disruptions linked to the Middle East conflict and a 12.5% US tariff on Singaporean exports, officials say overall growth should stay on track.
Meanwhile, to cushion households and businesses from higher energy prices, the government rolled out a S$900 million support package last month.
Economists think steady AI investment will keep things looking positive for the rest of the year.