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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.