FX.co ★ Singapore Q2 GDP Growth Beats Forecasts

Singapore’s economy expanded by 5.7% year-on-year in Q2 2026, easing from an upwardly revised 6.3% in Q1—its fastest annual growth since Q3 2024—yet still surpassing market expectations of 5.5%, according to preliminary estimates. The expansion was driven primarily by the goods-producing industries, which grew 10.4% (up from 8.4% in Q1). Within this cluster, manufacturing output jumped 12.2%, accelerating from 8.0% in the previous quarter on the back of strong AI-related demand. By contrast, growth in the construction sector slowed to 6.2% from 12.9%.

The services sector also lost some momentum, moderating to 4.6% growth from 6.2% in Q1. This mainly reflected weaker expansions in wholesale & retail trade and transportation & storage (6.3% vs 9.3%), in information & communications, finance & insurance, and professional services (3.9% vs 4.5%), as well as in accommodation & food services, real estate, administrative & support services, and other service industries (2.7% vs 3.2%). On a quarter-on-quarter seasonally adjusted basis, GDP rose 1.1% in Q2, following an upwardly revised 1.3% increase in Q1, matching market forecasts.