TEMPO.CO, Jakarta - Singapore on Monday, May 25, maintained its economic growth projection for 2026 at 2 to 4 percent, citing stronger-than-expected first quarter (Q1) expansion driven by demand related to artificial intelligence (AI), although risks from the conflict between the U.S., Israel, and Iran overshadow the global outlook, ANTARA reported.
Singapore's Ministry of Trade and Industry said the country's economy grew 6 percent year-on-year (yoy) in Q1, continuing the 5.7 percent expansion recorded in the previous quarter, supported by strong performance in the wholesale trade, manufacturing, and finance and insurance sectors.
Strong AI-related demand continues to underpin growth, the ministry said in a statement.
Meanwhile, rising prices and shortages of crude oil and related products caused by the conflict in the Middle East affected several economic sectors. This resulted in contractions in the fuel and chemical segments of the wholesale trade sector, as well as in the chemical cluster of the manufacturing sector.
In February, the ministry raised its growth projection for 2026 from 1 percent to 3 percent, to 2 percent to 4 percent, expecting the strong momentum from the fourth quarter (Q4) of 2025, largely driven by a surge in AI investment, to continue into 2026, along with expansionary fiscal policies in major economies.
However, since then, the global economic outlook has weakened following the outbreak of the conflict, the ministry said.
"AI-related demand has remained robust and should continue to support the growth of regional economies throughout the year," the ministry added.
Read: Luhut Optimistic on 8% Growth Despite Heavy MBG Costs
Click here to get the latest news updates from Tempo on Google News
Luhut Apologizes to Investors for Indonesia's Economic Turbulence
3 hari lalu
Luhut also said that Indonesia's economy remains relatively resilient compared to many other countries.
New Deadly Box Jellyfish Species Found off Singapore
4 hari lalu
Researchers discovered C. blakangmati, a highly venomous new species of box jellyfish near Singapore's Sentosa Island that actively hunts its prey.
How Low-Emission Rice Is Produced in Central Java
5 hari lalu
Singaporean agricultural technology companies, Rize, and Temasek Life Sciences Laboratory (TLL), have agreed to expand the low-emission rice project in Indonesia.
Laufey to Bring 'A Matter of Time' Tour to Jakarta After Sold-Out Singapore Show
5 hari lalu
Icelandic singer Laufey transformed Singapore Indoor Stadium into what fans described as giant jazz club during her sold-out A Matter Of Time concert.
Singapore's Snow City to Shut Down This September After 26 Years
5 hari lalu
Singapore's iconic indoor snow attraction Snow City will permanently close on Sept. 30, ending 26 years of operation.
Fact Check: Did Singapore Challenge Indonesia to War Over Fuel Dispute?
5 hari lalu
Fact check - Singapore's cancellation of fuel shipments did not trigger war. Singaporean companies ultimately delivered the fuel to Indonesia anyway.
Fans Face Dilemma over Same-Day K-pop Concerts in Singapore
7 hari lalu
Singapore's K-pop concert scene is set for a major showdown this November as Babymonster and Le Sserafim schedule shows on the same day.
Fact Check: False Claim Says Prabowo Closed Malacca Strait, Angering Anwar Ibrahim
7 hari lalu
Fact check - The content circulating is a compilation of videos from different events and contexts.
Disney Adventure Sets Sail Again from Singapore
11 hari lalu
Disney Adventure resumes its Singapore-based cruises following a brief cancellation. Affected passengers received full refunds and compensation.
Indonesia and Singapore Prep 'Rising 60' for 2027 Milestone
13 hari lalu
Foreign Minister Sugiono said that relations between Indonesia and Singapore over the past six decades have been anchored on strategic trust.
