SINGAPORE: Singapore’s economy grew a less-than-expected 4.6% year-on-year (y-o-y) in the first quarter of 2026 (1Q26), with the Iran war, which broke out at the end of February, darkening the outlook.
According to the Trade and Industry Ministry (MTI), Singapore’s gross domestic product (GDP) growth moderated from the 5.7% expansion in the previous quarter.
“While GDP growth remained resilient in the 1Q26, the US-Israel-Iran conflict that began at the end of February may weigh on economic activity in the coming quarters,” MTI said yesterday.
Bloomberg had a consensus estimate of about 5.8% growth for the 1Q26.
On a quarter-on-quarter seasonally-adjusted basis, the economy contracted by 0.3%, a reversal from the 1.3% expansion in the 4Q25, MTI said.
The cornerstone of Singapore’s economy, the manufacturing sector, grew by 5% y-o-y in the 1Q26, slower than the 11.4% expansion in the previous quarter.
Meanwhile, the construction sector expanded by 9%. — The Straits Times/ANN
