GDP growth forecast was slashed from the earlier projection of 4.5% in the previous Bloomberg survey in March. The full-year growth forecast was also lowered to 3.3% from 3.5%.
Meanwhile, economists raised their 2026 forecasts for headline and core inflation to 2.3% and 2%, respectively, from an earlier projection of 1.5% for both measures.
Singapore, the world’s second-richest country by GDP per capita in 2025 after Switzerland, reiterated its 2026 economic growth forecast of 2% to 4% in May, but warned that downside risks had increased because of energy and supply-chain disruptions stemming from the Middle East conflict, according to Channel News Asia.
Supply disruptions have spread beyond crude oil and pushed up production costs, Ahmad Mobeen, principal economist for Asia-Pacific at S&P Global Market Intelligence, said in a survey response.
“These developments will compress margins in energy-intensive sectors, while increased uncertainty around global trade flows is likely to dampen investment and production decisions and export orders in the coming quarters,” Mobeen added.
Marina Bay Sands, Singapore. Photo by Unsplash/Kelvin Zyteng |
Singapore’s economic growth is expected to remain uneven and face pressure from external uncertainties, even as key export sectors continue to show momentum, said Chua Han Teng, senior economist at DBS Bank.
Its economy grew a greater than expected 6% in the first quarter from a year earlier, but officials said the Middle East conflict had weakened the outlook with downside risks ahead, Reuters reported.
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