SINGAPORE: Singapore's economy is expected to grow by 5.0 per cent in 2026, up from 3.5 per cent in the previous survey amid sustained artificial intelligence (AI) demand outlook, according to the Monetary Authority of Singapore’s (MAS) latest survey.
The MAS survey of professional forecasters reflects the views of 21 economists and analysts who closely monitor the Singapore economy.
According to the report released on Wednesday, the most likely outcome is for the Singapore economy to grow by 5.0 per cent to 5.4 per cent, with an average probability of 37 per cent.
The Singapore economy expanded by 5.9 per cent year-on-year in the second quarter (2Q) of 2026, exceeding the respondents’ median forecast of 4.3 per cent in the previous survey.
It noted that all respondents identified a sustained AI-driven upturn in the technology cycle as a key support to Singapore’s economic outlook.
"Respondents also pointed to a de-escalation or resolution of the West Asia conflict and stronger-than-expected global growth as important upside risks," it said.
On the other hand, the survey noted that the downside risks to Singapore’s economic outlook were an escalation or prolonged conflict in West Asia, as well as a bursting of the AI bubble, with associated spillovers to financial markets
The survey also indicated that Singapore’s median forecast for 2027 gross domestic product (GDP) growth is 3.1 per cent.
The survey also showed that Consumer Price Index (CPI)-All Items and MAS Core Inflation for 2026 are forecast at 2.1 per cent and 1.9 per cent, respectively.
The current median forecast for CPI-All Items inflation in 2026 is 2.1 per cent, slightly lower than 2.3 per cent in the June 2026 survey, while the median forecast for MAS Core Inflation is also lower at 1.9 per cent compared with 2.0 per cent in the previous survey.
"On the labour market front, respondents expect the unemployment rate to remain at 2.1 per cent at year-end, unchanged from the June 2026 survey," it added. - Bernama
