Singapore’s economy is expected to remain resilient in 2026, supported by sustained momentum in technology-related sectors, particularly those linked to artificial intelligence (AI), according to the Monetary Authority of Singapore (MAS). The central bank noted that stronger-than-expected GDP growth in 2025, estimated at 4.8%, has provided a favorable starting point for the year ahead. Fourth-quarter growth accelerated to 5.7% year-on-year, underscoring continued expansion across key sectors.
MAS expects AI-related capital expenditure globally to continue supporting Singapore’s electronics and semiconductor supply chains, with technology segments projected to contribute a larger share of GDP growth in 2026. Singapore’s position in upstream activities such as semiconductor manufacturing and server production, as well as downstream AI software and digital services, places it well to benefit from ongoing investment in data centers, advanced chips, and related infrastructure. Non-technology sectors including construction, finance and insurance, and aerospace manufacturing are also forecast to post firm growth, supported by infrastructure projects and steady economic conditions.
While growth is expected to moderate slightly from 2025 levels, the overall outlook remains positive. The output gap is projected to stay mildly positive, and the labor market is expected to remain stable with low unemployment and continued wage growth. Inflation is forecast at 1–2% in 2026, reflecting steady demand and manageable cost pressures. Overall, MAS assesses that Singapore enters 2026 with solid fundamentals, diversified growth drivers, and continued support from global AI investment trends.
(Sources: Monetary Authority of Singapore; The Business Times)
