Economists see slower Singapore growth in 2026, faster inflation: Survey
Sign up now: Get ST's newsletters delivered to your inbox
Gross domestic product will expand 3.9 per cent in the second quarter of 2026, according to the results, down from 4.5 per cent in the previous survey in March.
ST PHOTO: KUA CHEE SIONG
SINGAPORE - Economists lowered their forecasts for Singapore’s economic growth and raised inflation expectations, according to the latest Bloomberg News survey conducted from June 2 to 5.
Gross domestic product (GDP) will expand 3.9 per cent in the second quarter of 2026, according to the results, down from 4.5 per cent in the previous survey in March.
The full-year GDP outlook fell to 3.3 per cent from 3.5 per cent.
Headline and core inflation forecasts for 2026 were raised to 2.3 per cent and 2 per cent, respectively, from 1.5 per cent previously for both.
While the Singapore Government in May reiterated its 2 per cent to 4 per cent forecast for growth in 2026, it warned that downside risks have risen because of energy and supply chain disruptions from the Middle East conflict.
Supply disruptions have extended beyond crude oil and driven up production costs, said Ahmad Mobeen, S&P Global Market Intelligence’s principal economist for Asia-Pacific, in a survey response.
“These developments will compress margins in energy-intensive sectors, while increased uncertainty around global trade flows is likely to dampen investment and production decisions and export orders in the coming quarters,” Mobeen added.
Singapore’s growth is expected to be uneven and challenged by external uncertainties, even as key export sectors continue to show momentum, said Chua Han Teng, senior economist at DBS Bank. BLOOMBERG
