Singapore ' s economy grew by 5.7 per cent in the second quarter of 2026, exceeding market expectations and largely as a result of strong manufacturing performance. According to the Ministry of Trade and Industry of Singapore, despite the slowdown in services growth, manufacturing remained the main driver of economic growth.
At the time of the release of the data, the Central Bank of Singapore was about to publish quarterly monetary policy decisions. Singapore manages monetary policy by influencing the value of the Singapore dollar to the currencies of its major trading partners, rather than directly adjusting interest rates. The data show a slight weakening of the Singapore dollar against the United States dollar at 1.294.
In addition, Singapore ' s inflation rate stabilized at 1.8 per cent in May, the highest rate since September 2024. Singapore ' s Ministry of Trade and Industry expects GDP growth to be between 2 and 4 per cent in 2026, but as a result of the conflict between the United States, Israel and Iran, downside risks have increased significantly.