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Singapore's Economy Grew 5.7% in Second Quarter of 2026, Driven by AI Demand

Manufacturing led the advance as AI-related demand lifted electronics and precision engineering output, while services growth slowed, the Ministry of Trade and Industry said.

  • On Tuesday, The Ministry of Trade and Industry reported Singapore's economy expanded 5.7% year-on-year in the second quarter, easing from the 6.3% recorded in the previous quarter.
  • Manufacturing output powered the economy, growing 12.2% year-on-year amid strong AI-related demand for semiconductors and precision engineering equipment.
  • Construction growth cooled significantly to 6.2% year-on-year from 12.9% three months ago, while overall services growth eased to 4.6% during the April to June period.
  • Geopolitical uncertainty from the US-Israel-Iran conflict weighs on the trade outlook, with The MTI noting that "although downside risks have risen significantly as a result of the US-Israel-Iran conflict," supply chain disruptions persist.
  • The Monetary Authority of Singapore prepares to announce its quarterly monetary policy decision later this month, with economists largely forecasting a hold on policy settings.
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Globo broke the news in Brazil on Monday, July 13, 2026.
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