Singapore’s economic growth is projected to reach 5% in 2026, an increase from the earlier forecast of 3.5%. This optimistic outlook is driven by the continued demand for artificial intelligence (AI), which bolsters the technology sector, as revealed in a survey conducted by the Monetary Authority of Singapore (MAS). The consensus among 21 economists and analysts suggests that the growth will likely sit within a range of 5% to 5.4%.
The country’s economy demonstrated robust performance in the second quarter, expanding by 5.9% year-on-year. This growth rate significantly surpassed the previous median forecast of 4.3%, highlighting the strong economic momentum. The surveyed experts unanimously pointed to the AI-driven technology upswing as a crucial factor supporting Singapore’s economic outlook.
In addition to the AI sector’s influence, the survey identified other potential factors that could drive economic growth. These include a resolution or de-escalation of the conflict in West Asia and stronger-than-expected global growth. However, the respondents also cautioned about certain risks that could impact this positive trajectory. A prolonged conflict in West Asia and a possible burst of the AI investment bubble were highlighted as significant downside risks that could affect future developments.
Looking further ahead, economists predict a GDP growth of 3.1% for 2027. Meanwhile, inflation is anticipated to be at 2.1% in 2026, with the MAS core inflation expected to register at 1.9%. The unemployment rate by the end of the year is projected to remain stable at 2.1%, indicating a steady job market amidst the economic changes.