Singapore economy grows 6% year-on-year in Q1, above advance estimate

Singapore’s economy expanded by 6% year-on-year in the first quarter of 2026, exceeding the government’s earlier estimate of 4.6%, according to data released May 25. On a seasonally adjusted quarter-on-quarter basis, gross domestic product rose by 1%, reversing an anticipated 0.3% contraction. The trade ministry retained its full-year growth projection at 2% to 4%, though it highlighted the Middle East conflict as a major downside risk. Disruptions to global trade and energy prices threaten Singapore’s trade-dependent economy, which remains vulnerable to volatility. Inflation data for April will be published later on May 25, with March’s core inflation at 1.7% year-on-year. Economists expect a similar reading for April, as the Monetary Authority of Singapore (MAS) tightened monetary policy last month due to concerns over rising inflation from the conflict. MAS had held rates steady at its previous three meetings but eased policy in April 2025. It also raised its 2026 inflation forecasts to 1.5%–2.5% from the prior range of 1%–2%, reflecting heightened economic uncertainty.