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Singapore lifts 2026 growth outlook as AI demand offsets energy drag

Standard Chartered raised its 2026 GDP forecast to 4.9% from 3.9%, citing private machinery and equipment investment contributing 1 percentage point to H1 growth.

Reported · Written up by our desk · Central Banks

Standard Chartered economists Edward Lee and Jonathan Koh said Singapore’s first-half 2026 GDP grew 6.1% year-on-year, supported by strong AI-related demand that helped offset weakness in the energy sector, according to FXStreet.

The Singapore government raised its 2026 growth forecast to a range of 4.5% to 5.5%, and Standard Chartered increased its own 2026 forecast to 4.9% from 3.9%, while expecting more moderate growth in the second half due to electronics base effects.

On an expenditure basis, the economists pointed to investments as driving overall activity, with private investment in machinery and equipment contributing 1 percentage point to first-half GDP growth.

FXStreet also noted that the outlook for Singapore growth is part of a wider macro backdrop investors are monitoring as markets look ahead to key data releases, including US inflation data due on Wednesday.

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