Post by : Shweta

Singapore Economy Records 5.7% Growth in Q2

SINGAPORE — Singapore's economy grew 5.7% year-on-year in the second quarter of 2026, according to advance estimates released by the Ministry of Trade and Industry. The pace eased from the 6.3% expansion recorded in the first quarter of the year.

Manufacturing Leads Economic Expansion

Manufacturing was the strongest-performing sector, expanding 12.2% year-on-year. Growth was supported by strong demand for electronics and precision engineering products, particularly amid rising demand for semiconductors linked to artificial intelligence.

Economy Expands 1.1% From Previous Quarter

On a quarter-on-quarter basis, Singapore's economy grew 1.1%, following a 1.3% expansion in the first three months of 2026. The ministry said the advance estimates are mainly based on economic data from April and May and could be revised when complete quarterly figures become available.

Electronics and Precision Engineering Drive Growth

Higher production in electronics and precision engineering supported manufacturing activity. However, the chemicals segment contracted because of feedstock disruptions linked to the Middle East conflict, while biomedical manufacturing also declined. Manufacturing grew 5.3% on a seasonally adjusted quarter-on-quarter basis.

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Construction Growth Slows in Second Quarter

Singapore's construction sector expanded 6.2% year-on-year, slowing significantly from the 12.9% increase recorded in the previous quarter. Both public and private-sector construction projects contributed to the sector's growth.

Services Sectors Record Mixed Performance

Wholesale and retail trade, transportation and storage grew 6.3%, while information and communications, finance and insurance, and professional services expanded 3.9%. Accommodation and food services, real estate, administrative support and other services collectively grew 2.7%.

IT and Real Estate Demand Support Services

Growth across Singapore's services industries was supported by resilient demand for information technology solutions and steady activity among real estate developers. Health, social services and education also continued to contribute to the country's economic expansion.

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