Singapore GDP Growth Eases to 5.7% in Q2

Q2 2026 growth moderates but beats forecasts

Singapore’s economy expanded 5.7% year-on-year in the second quarter of 2026, easing from a 6.3% expansion in the first quarter. The latest figure represents a moderation in growth momentum but still comes in slightly above the 5.5% increase expected by economists polled by Reuters. The data are published as advance estimates by the Ministry of Trade and Industry, providing an early reading on economic conditions before more detailed figures are released later.

On a seasonally adjusted quarter-on-quarter basis, gross domestic product rose 1.1% in the April to June period. This sequential gain indicates that, despite the slower year-on-year pace, overall activity continued to expand compared with the first three months of the year. The combination of solid quarter-on-quarter growth and a small beat versus expectations frames the second quarter as one of continued, but more measured, expansion.

Goods-producing industries lead the expansion

The goods-producing segment of the economy was a key driver of performance in the second quarter. Goods-producing industries expanded 10.4% year-on-year, accelerating from their growth in the prior quarter. This strong outcome contrasts with the broader moderation in headline GDP and underscores the resilience of output in sectors tied to goods production.

The robust performance in the goods segment helped offset slower gains elsewhere in the economy. While the detailed industry breakdown is not fully disclosed in the advance release, the reported strength in goods-producing activity suggests that externally oriented and production-focused sectors remained a core pillar of growth in the quarter.

Services sector growth slows from earlier pace

Services-producing industries grew 4.6% year-on-year in the second quarter of 2026. This marked a slowdown from 6.2% growth in the first quarter. The deceleration in services tempered the overall expansion of the economy even as goods-producing industries strengthened.

The softer pace in services indicates that domestically and regionally oriented activities were expanding, but at a more moderate rate than earlier in the year. Given the large weight of services in Singapore’s economy, this shift contributed to the easing in the headline GDP growth rate from 6.3% to 5.7% between the first and second quarters.

Policy outlook ahead of upcoming MAS review

The release of the advance second-quarter GDP figures comes as the Monetary Authority of Singapore prepares for its next quarterly monetary policy decision. The central bank’s upcoming policy review is due before the end of this month. The data provide an important input for assessing current economic conditions as policymakers consider the appropriate stance.

With growth still outpacing consensus expectations but showing signs of moderation, the latest figures highlight a mixed backdrop of strong goods output and cooling services activity. The advance estimates offer an early signal of how the balance of these forces is shaping Singapore’s near-term economic trajectory as markets look ahead to the MAS decision.