Singapore's economy grows 5.4% but slower than previous quarter
Summarised from 2 outlets · Updated 14 Oct, 02:44 · Archive
Singapore's third-quarter GDP growth decelerated to 5.4%, beating economist forecasts but slowing from a four-year high.
Singapore's economic expansion decelerated in the third quarter, with GDP growth dropping to 5.4% after hitting a four-year high in the preceding quarter. The growth rate beat economist expectations of 5%, according to Reuters polls. Manufacturing, one of the city-state's largest sectors contributing about 20% of GDP, declined, but expansion in construction offset the fall.
The Monetary Authority of Singapore held monetary policy steady, pausing after two consecutive tightening rounds in April and July. The MAS cited inflation risks from higher energy prices as the reason for those earlier moves. The central bank projects inflation will remain elevated in the near term due to higher energy and food prices, then ease from mid-2027.
Singapore upgraded its annual growth forecast for 2026 to 4.5% to 5.5%, more than double its previous forecast of 2% to 4%. The country's Ministry of Trade and Industry had initially estimated growth at 1% to 3% at the start of the year. The MAS expects the economy to expand at a firm pace in the coming quarters before moderating as the artificial intelligence cycle eases and global financial conditions tighten.
How it is being reported
- Singapore’s economy grows more than 5 percent amid AI boomCity-state's GDP expands 5.4 percent in July-September quarter, according to advance government estimates.Al Jazeera · 14 Oct, 05:25
- Singapore third-quarter GDP growth softens from four-year high but beats estimatesThe GDP print beat expectations of a 5% growth from economists polled by Reuters.CNBC · 14 Oct, 01:12
In this story: Singapore · Monetary Authority of Singapore · Ministry of Trade and Industry
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