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Singapore GDP growth slows ahead of MAS policy review
GDP rose 5.7% year on year in April to June, down from 6.3% in the first quarter, keeping the Monetary Authority of Singapore focused on inflation risks from the US-Iran conflict.
Singapore's economy grew faster than expected in the second quarter, but the pace slowed from the first quarter, according to preliminary government data cited by Forexlive. GDP increased 5.7% year on year in April to June, compared with a 5.5% forecast, and rose 1.1% quarter on quarter on a seasonally adjusted basis.
The annual growth rate nevertheless decelerated from 6.3% in the first quarter, reinforcing a cooling trend even as the print beat consensus. The trade ministry also maintained a full year growth forecast range of 2% to 4%, which keeps the latest quarter within the central bank and market outlook.
Markets are watching the data for clues about the next decision from the Monetary Authority of Singapore, which tightened policy in April to help guard against inflation tied to the US-Iran conflict. In that April decision, MAS raised both its core and headline inflation forecasts for 2026 to a range of 1.5% to 2.5%, from 1.0% to 2.0% previously, and its next policy review is due before month end.
Forexlive said Tuesday's growth figures are unlikely to materially change MAS's stance, with momentum easing even before additional conflict linked inflation effects fully pass through costs. With growth described as solid rather than accelerating, policymakers appear to have limited room to justify moving away from the tighter position while geopolitical inflation risks remain in play.