Singapore: Growth profile raised – DBS

DBS Group Research economist Chua Han Teng upgrades Singapore’s Gross Domestic Product (GDP) outlook, noting that Singapore’s economy has remained resilient to renewed geopolitical shocks from the Middle East conflict. DBS now projects real GDP growth of 4.3% in 2026 and 3.0% in 2027, supported by strong first-half performance, reduced stagflationary risks from US-Iran de-escalation, and ongoing momentum in AI, financial services and construction.

DBS lifts medium-term growth forecasts

"Singapore’s economy has weathered resiliently the renewed geopolitical shocks stemming from the war in the Middle East since its onset in late February."

"Economic growth likely ended 1H26 in solid shape, providing positive carryover effects into 2H26."

"We raise our real GDP growth forecasts for 2026 and 2027 to 4.3% and 3.0%, respectively (from 2.8% and 2.3%)."

"As we enter 2H26, the managed de-escalation of US-Iran tensions, initiated by an interim peace deal, reduces the risks of escalating input cost pressures, persistent severe supply chain disruptions, and significantly weakened external demand in the coming months."

"We are dialling up our growth profile over the next few quarters, although this will be tempered by high base effects."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)