Singapore: GDP revision and forecast upgrade – DBS

DBS Group Research expects Singapore’s final 2Q26 GDP to be revised up to 5.9% year-on-year and 1.3% quarter-on-quarter seasonally adjusted, driven by stronger manufacturing and services. With first-half growth above trend, the team sees a high chance the government will raise its 2026 GDP forecast to 4.0–5.0%, while still highlighting significant uncertainty and downside risks.

Growth beats trend, forecast upgrade in sight

"We expect Singapore’s final 2Q26 GDP print to be revised up to 5.9% yoy and 1.3% qoq sa, from the advance estimates of 5.7% yoy and 1.1% qoq sa."

"The modestly higher growth figures were driven by a firmer manufacturing outturn than initially reported, alongside a possible upward revision to services growth amid stronger expansion in trade-related services, as indicated by the robust pickup in re-exports in June."

"With 1H26 growth tracking well above trend, we see a high likelihood that the government will upgrade its official 2026 GDP growth forecast to 4.0-5.0% from 2.0-4.0%, even as it continues to flag high uncertainty and downside risks to the outlook."

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