Singapore’s economic growth is now projected to reach 5% in 2026, an optimistic revision from the earlier estimate of 3.5%. This upward adjustment is attributed to the ongoing robust demand for artificial intelligence (AI), which continues to bolster the technology sector. The revised forecast comes from a survey conducted by the Monetary Authority of Singapore involving 21 economists and analysts.
The survey found that the majority of experts anticipate the growth rate to fall between 5% and 5.4%. Singapore’s economy has already shown strong performance, expanding by 5.9% year-on-year in the second quarter, far outpacing the previous median prediction of 4.3%. The sustained momentum in AI-driven technology has been identified by all respondents as a crucial factor supporting the positive economic outlook.
While the AI sector’s growth provides a significant boost, economists also pointed to other potential factors that could enhance the economic scenario. These include a resolution or easing of tensions in West Asia and stronger-than-expected global growth. However, uncertainties remain, with a prolonged conflict in West Asia and the risk of an AI investment bubble burst considered major threats to the economy.
Looking ahead to 2027, economic experts predict a moderate GDP growth of 3.1%. In terms of inflation, it is expected to stand at 2.1% for 2026, with the Monetary Authority of Singapore’s core inflation projected at 1.9%. Meanwhile, the unemployment rate is anticipated to hold steady at 2.1% by the end of the year.