Singapore's economy grew 5.7 per cent in Q2 2026, a little slower than the previous quarter, as manufacturing boomed while chemicals took a hit.
KEY POINTS
IN SIMPLE TERMS
Singapore's economy is still growing, just not as fast as before. Factories making chips did really well because of AI demand, but chemical factories struggled due to problems getting materials from the Middle East.
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In a press release by MTI, Singapore's economy grew by 5.7 per cent year-on-year in the second quarter of 2026.
This is based on advance estimates released on 14 July 2026.
The growth rate eased from the 6.3 per cent recorded in the first quarter of 2026.
On a quarter-on-quarter seasonally-adjusted basis, the economy grew by 1.1 per cent.
This extended the 1.3 per cent growth seen in Q1 2026.
The MTI explained how these figures were calculated.
"The advance GDP estimates for the second quarter of 2026 are computed largely from data in the first two months of the quarter (i.e., April and May 2026). They are intended as an early indication of GDP growth in the quarter and are subject to revision when more comprehensive data become available."
This means the numbers could still change once more data comes in.
The full picture, including inflation and employment data, will come out in the Economic Survey of Singapore in August 2026.
According to MTI, the manufacturing sector grew robustly by 12.2 per cent year-on-year in Q2 2026.
This is a big jump from the 8.0 per cent growth in Q1 2026.
The main driver was strong demand linked to artificial intelligence.
MTI explained the reason behind this growth.
"Growth during the quarter was largely driven by output increases in the electronics and precision engineering clusters on account of strong AI-related demand for semiconductors and semiconductor manufacturing equipment respectively."
But not every cluster did well.
"On the other hand, the chemicals and biomedical manufacturing clusters contracted, with the former due to feedstock disruptions arising from the conflict in the Middle East."
This shows how global events can hurt local industries.
On a quarter-on-quarter basis, manufacturing grew by 5.3 per cent.
This was a turnaround from a 2.2 per cent contraction in Q1 2026.
You can read more about how manufacturing has shaped Singapore's GDP in the past in this Q3 2024 report.
The construction sector expanded by 6.2 per cent year-on-year in Q2 2026.
This was slower than the 12.9 per cent growth in Q1 2026.
Growth came from both public and private sector projects.
But on a quarter-on-quarter basis, construction contracted by 2.1 per cent.
This was a pullback from 7.4 per cent growth in the previous quarter.
The wholesale & retail trade and transportation & storage sectors grew by 6.3 per cent year-on-year.
This moderated from 9.3 per cent growth in Q1 2026.
However, on a quarter-on-quarter basis, this group shrank by 0.3 per cent.
As mentioned by MTI, the information & communications, finance & insurance and professional services group grew by 3.9 per cent year-on-year in Q2 2026.
This extended the 4.5 per cent growth from the previous quarter.
All sectors in this group grew during the quarter.
The remaining group, covering accommodation & food services, real estate, administrative & support services and other services, grew by 2.7 per cent year-on-year.
This eased from 3.2 per cent growth in Q1 2026.
All sectors in this group grew, except for food & beverage services.
Real estate grew due to steady developer activities.
Health & social services and education also stayed resilient.
Here's a quick look at how Singapore's GDP growth has moved across recent quarters:
| Quarter | Year-on-Year Growth | Quarter-on-Quarter Growth (Seasonally Adjusted) |
|---|---|---|
| 2Q 2025 | 5.4% | 1.8% |
| 3Q 2025 | 4.5% | 1.9% |
| 4Q 2025 | 5.7% | 1.3% |
| 1Q 2026 | 6.3% | 1.3% |
| 2Q 2026 | 5.7% | 1.1% |
Looking at the wider picture, the International Monetary Fund projects Singapore's full-year 2026 GDP growth to come in at 3.5 per cent[2].
Singapore's nominal GDP is expected to reach S$659.57 billion in 2026[2].
In terms of Purchasing Power Parity, Singapore's GDP is estimated at S$895.06 billion, with projections suggesting almost S$979 billion by 2030[4].
This slowing pace comes after a period of stronger expansion, similar to what was flagged in an earlier 2025 slowdown forecast.
These trends also tie into how Singapore's labour market and job vacancies have been shifting.
Rising costs also remain a concern, as seen in earlier data on core inflation trends.
The easing of GDP growth from 6.3 per cent to 5.7 per cent shows the economy is still expanding, but at a slower pace.
The strong manufacturing performance highlights how much Singapore's economy depends on global demand for electronics and AI-related technology.
At the same time, the chemicals sector's struggles show how geopolitical conflicts can quickly affect trade industries.
Broad-based growth across most services sectors suggests the overall economy remains stable for now.
More details on inflation, employment, and productivity will be shared in the Economic Survey of Singapore, due out in August 2026.
Do you think Singapore's economy can keep up this pace of growth for the rest of 2026?
[2] https://www.worldometers.info/gdp/singapore-gdp/
[3] https://www.singstat.gov.sg/files/678ec3aa-30e5-4a67-8de3-1349182b4d15.pdf
[4] https://www.worldeconomics.com/GrossDomesticProduct/Real-GDP-PPP/Singapore.aspx
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