Singapore's Economy Grows 5.7% in Second Quarter as Momentum Eases

Singapore's economy grew 5.7% year-on-year in the second quarter, according to preliminary official data, exceeding the 5.5% expansion economists had forecast but easing from 6.3% in the first quarter as momentum cooled. On a quarter-on-quarter, seasonally adjusted basis, output rose 1.1%. Manufacturing remained the main engine, expanding about 12.2% from a year earlier, helped by electronics demand tied to the global artificial intelligence build-out, while services growth moderated. The Ministry of Trade and Industry kept its full-year growth forecast at 2% to 4% but cautioned that downside risks have increased amid conflict in the Middle East and lingering trade uncertainty. The figures land ahead of a closely watched policy decision by the Monetary Authority of Singapore, which manages policy through the exchange rate rather than interest rates. The central bank tightened settings in April on inflation concerns and raised its 2026 core and headline inflation forecasts. Some analysts have grown more optimistic on growth, with one major bank lifting its projection and describing the coming review as increasingly live for possible tightening, though most economists expect the MAS to hold this month before considering a move later in the year.