Singapore’s economy grew by 5.4 per cent year on year in the third quarter of 2026, according to advance estimates released by the Ministry of Trade and Industry (MTI) on October 14. Growth moderated from 5.9 per cent in the second quarter but exceeded the 5 per cent median forecast in a Reuters poll of economists.
On a quarter-on-quarter seasonally adjusted basis, the economy expanded by 1.1 per cent, compared with 1.5 per cent in the previous quarter.
Manufacturing grew by 7.5 per cent year on year, supported by output in electronics, precision engineering, transport engineering and general manufacturing. Construction expanded by 8.8 per cent, according to the official advance estimates.
Singapore has benefited from global investment in artificial intelligence infrastructure, which has supported demand for semiconductors and related equipment. The country is an important manufacturing and supply-chain hub for the semiconductor industry.
The Monetary Authority of Singapore maintained its monetary policy settings on October 14, keeping the slope, width and centre of its exchange-rate policy band unchanged. The authority said steady demand for chips continued to support AI-related investment, although it expects the growth cycle to moderate.
MTI raised its 2026 economic growth forecast in August to between 4.5 and 5.5 per cent. The Monetary Authority of Singapore projected core inflation to average between 1.5 and 2 per cent this year.
The latest figures indicate continued economic expansion, with manufacturing and construction both contributing to third-quarter growth.
