On a seasonally adjusted quarter-on-quarter basis, gross domestic product (GDP) rose 1.1%, extending the 1.3% growth recorded in the first quarter, according to advance estimates released by the Ministry of Trade and Industry on Tuesday.
The second quarter’s growth rate exceeded the median forecast of 5.5% projected by private-sector economists polled by Bloomberg. The stronger-than-expected performance has led some analysts to raise their full-year GDP growth forecasts.
Workers on a barge clear rubbish from the water of Marina Bay in Singapore on July 30, 2025. Photo by AFP |
Maybank economists Chua Hak Bin and Brian Lee raised their 2026 GDP growth projection to 4.8%, from 4.6% previously, according to The Business Times.
Analysts at Bank of Singapore, Ang Kai Wei and Rahul Bajoria, also lifted their forecast to 4.5%, from 3.4%, placing their projection above the current official range.
The goods-producing industries recorded a sharp acceleration, expanding 10.4% year-on-year in the second quarter, compared with 8.4% growth in the previous quarter.
Manufacturing output climbed 12.2% yoy, accelerating significantly from the 8% growth recorded in the first quarter.
The expansion was largely driven by stronger output in the electronics and precision engineering clusters, supported by robust artificial intelligence-related demand for semiconductors and semiconductor manufacturing equipment, respectively.
The chemicals and biomedical manufacturing clusters contracted during the quarter, with the chemicals segment affected by feedstock disruptions linked to the ongoing conflict in the Middle East.
On a sequential basis, the manufacturing sector expanded 5.3%, reversing the 2.2% contraction recorded in the first quarter.
The construction sector, meanwhile, lost momentum, growing 6.2% yoy in the second quarter, compared with 12.9% in the previous quarter. Growth was supported by output from both public- and private-sector construction activities.
DBS senior economist Chua Han Teng said the second half of the year is likely to be resilient. He said construction and financial services, along with continued support from the AI boom, could help drive the economy, as quoted by Channel News Asia.
“For the full year, we are expecting 4.3%, and I think that is pretty much intact given the strong numbers that we’ve seen in the first half,” he said.
Comments are closed.