DBS economist Chua Han Teng highlights that Singapore’s 1Q26 GDP development was resilient, with actual GDP up 4.6% year-on-year, however warns that the Iran battle shock and world slowdown pose draw back dangers. DBS maintains its 2026 actual GDP development forecast at 2.8%, broadly aligned with MAS expectations for the output hole to common round zero as development slows by 2026.
Agency begin however outlook softens
“Singapore’s economic system entered 2026 on a agency footing, mirrored in resilient actual GDP development of 4.6% yoy and -0.3% qoq sa in 1Q26 (however slower than 5.7% yoy and 1.3% qoq sa in 4Q25), in accordance with MTI’s advance estimates.”
“The MAS’s choice additionally got here amid still-resilient near-term financial development dynamics, however with important draw back uncertainties within the coming quarters.”
“We anticipate this resilience to be examined because the 12 months progresses, with the extremely open economic system dealing with renewed geopolitical shocks.”
“We preserve our 2026 actual GDP development forecast at 2.8%, however see draw back exterior dangers.”
“General, our Singapore development expectations seem aligned with the MAS’s view for GDP development to sluggish over the course of 2026.”
(This text was created with the assistance of an Synthetic Intelligence software and reviewed by an editor.)
