Singapore's economic growth projected to slow in Q2

Singapore’s economy grew 5.7 per cent year-on-year in the second quarter (Q2) of 2026, slowing from the 6.3 per cent growth recorded in the previous quarter, according to advance estimates released on Tuesday (14/7). On a seasonally adjusted quarter-on-quarter basis, gross domestic product (GDP) expanded by 1.1 per cent, following 1.3 per cent growth in the first quarter (Q1), the Ministry of Trade and Industry said. The manufacturing sector grew 12.2 per cent year-on-year, accelerating from 8.0 per cent growth in Q1. The ministry stated that the expansion was largely driven by increased production in the electronics and precision engineering clusters, supported by strong demand for semiconductors and semiconductor manufacturing equipment related to artificial intelligence (AI). The chemicals and biomedical manufacturing clusters contracted during the quarter. The decline in the chemicals cluster was caused by raw material supply disruptions stemming from the conflict in the Middle East, the ministry said. The advance estimates for Q2 are primarily based on data from the first two months of the quarter. The ministry will release the preliminary GDP estimates in August.