Singapore second-quarter growth slows to 5.7 percent

Singapore's economic growth slowed in the second quarter, with advance government estimates showing a 5.7 percent expansion in April-June, compared with 6.3 percent in the previous three months.

The trade ministry said manufacturing was the main source of growth. The sector expanded 12.2 percent from a year earlier, faster than the 8.0 percent growth recorded in January-March. The ministry said the increase was mainly driven by higher output in electronics and precision engineering, helped by strong artificial intelligence-related demand for semiconductors and semiconductor manufacturing equipment.

The source report said global investment in artificial intelligence has increased demand for chips, data centre equipment and other technology products, benefiting export-oriented economies such as Singapore. However, second-quarter growth was partly offset by contractions in the chemicals and biomedical clusters, both key parts of manufacturing. The ministry said chemicals were affected by feedstock disruptions linked to the conflict in the Middle East.

Prime Minister Lawrence Wong warned last month that Singapore could face slower growth and higher inflation in the second half of the year as the impact of the Middle East war deepened. The government maintained its 2026 growth forecast at between 2.0 and 4.0 percent.