Singapore has upgraded its 2026 economic growth forecast, with GDP growth now expected to be between 4.5% and 5.5%. This represents more than double the low end of the previous forecast of 2% to 4%.
The Ministry of Trade and Industry attributed the improved outlook to stronger AI-related spending and a further acceleration in AI-related capital expenditure. This growth is led by global demand for electronic goods resulting from the AI infrastructure build-out.
These factors have helped offset the drag from continued fighting in the Middle East, which has had a less severe impact than feared. Additionally, NODX grew 18.6 per cent in the first half of 2026, marking its strongest first-half performance since 2010.