Singapore’s economy grew 5.7% year-on-year in the second quarter of 2026, supported by robust manufacturing growth driven by AI-related semiconductor demand, according to the Ministry of Trade and Industry.
Singapore’s economy expanded by 5.7 per cent year-on-year in the second quarter of 2026, according to advance estimates released by the Ministry of Trade and Industry (MTI) on 14 July 2026. Although growth moderated from the 6.3 per cent recorded in the first quarter, the economy continued to expand, supported by strong manufacturing performance and sustained quarterly growth.
On a seasonally adjusted quarter-on-quarter basis, Singapore’s Gross Domestic Product (GDP) grew by 1.1 per cent, following a 1.3 per cent expansion in the previous quarter, indicating continued economic momentum despite a more moderate pace of annual growth.
Source: MTI Singapore
The manufacturing sector remained the primary driver of economic expansion, recording 12.2 per cent year-on-year growth in the second quarter, up from 8.0 per cent in the preceding quarter. According to MTI, the sector benefited from higher output in the electronics and precision engineering clusters, supported by robust artificial intelligence (AI)-related demand for semiconductors and semiconductor manufacturing equipment.
However, performance across manufacturing segments remained mixed. The chemicals and biomedical manufacturing clusters contracted during the quarter, with the chemicals industry affected by feedstock disruptions arising from the conflict in the Middle East.
On a quarter-on-quarter seasonally adjusted basis, manufacturing expanded by 5.3 per cent, reversing the 2.2 per cent contraction recorded in the first quarter of the year.
The advance GDP estimates provide an early indication of Singapore’s economic performance ahead of MTI’s comprehensive quarterly economic report. The ministry is expected to release a more detailed assessment of sectoral developments and the broader economic outlook in its forthcoming report.
Source: MTI Singapore
