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

SINGAPORE — Singapore's economy grew six per cent in the first quarter of 2026 from a year earlier, government data showed on Monday (May 25), higher than an official advance estimate of 4.6 per cent.

On a quarter-on-quarter, seasonally adjusted basis, gross domestic product expanded by one per cent in the January-March period, compared with an advance estimate of a 0.3 per cent contraction.

The trade ministry maintained its growth forecast for this year at two per cent to four per cent, but added that the Middle East conflict has significantly raised downside risks.

The conflict has upended global growth and inflation trajectories, throwing interest rate expectations into disarray. 

As a small trade-dependent hub, Singapore is especially vulnerable to supply chain disruptions and volatile energy prices.

Inflation data for April will be released on Monday afternoon. In March, core inflation rose 1.7 per cent from a year earlier, and economists expect a similar reading for April.

Last month, the central bank tightened monetary policy due to the risk of the Iran war fuelling inflation. 

The central bank had held policy steady at its previous three meetings in January, October and July. It had eased policy last April.

The Monetary Authority of Singapore also in April raised core and headline inflation forecasts for 2026 to 1.5 per cent to 2.5 per cent, from one per cent to two per cent previously.

[[nid:736415]]