FX.co ★ Singapore GDP Growth Slows More Than Expected

Singapore’s economy expanded by 4.6% year-on-year in the first quarter of 2026, down from 5.7% in the previous quarter and below market expectations of 5.4%, according to advance estimates. While growth remained resilient, momentum clearly moderated, and new risks have emerged from the US–Israel–Iran conflict that began in late February.

Manufacturing recorded the sharpest slowdown among the major sectors, with growth easing to 5.0% from 11.4% in Q4. The services sector also lost some steam, posting 4.7% growth compared with 4.8% previously. Within services, wholesale and retail trade and transportation and storage edged down to 6.7% from 6.8%, while accommodation and food services, real estate, and other services softened to 2.3% from 2.9%.

In contrast, construction was the only sector to gain traction, accelerating to 9.0% growth from 4.6% in the prior quarter. On a quarter-on-quarter, seasonally adjusted basis, GDP contracted by 0.3%, the first decline since Q4 2022, though it was smaller than the expected 0.5% drop.