Singapore Retains Growth Forecast Despite Uncertainties; Inflation Remains Stable

(RTTNews) - Singapore's economic growth forecast for this year was maintained, citing better-than-expected expansion in the first quarter, the Ministry of Trade and Industry said Monday.

The ministry forecast the economy to grow in the range of 2.0 percent to 4.0 percent this year.

In February, outlook was upgraded from 1.0 percent to 3.0 percent on expectation that the strong growth in the fourth quarter of 2025 due in large part to the AI investment boom would be sustained into 2026. However, the outlook deteriorated following escalating tensions in the Middle East.

In the first quarter, the city-state economy expanded notably by 6.0 percent year-on-year after rising 5.7 percent in the previous quarter. The ministry revised up growth for the first quarter from 4.6 percent.

On a quarterly basis, GDP growth eased to 1.0 percent from 1.3 percent in the fourth quarter.

Elsewhere, data jointly published by the Monetary Authority of Singapore and MTI showed that consumer price inflation remained unchanged at 1.8 percent in April. Higher private transport and accommodation inflation was offset by lower core inflation. Private transport inflation advanced to 8.1 percent on account of larger increases in petrol and car prices. Accommodation inflation edged up to 0.4 percent due to the rise in housing rents.

Meanwhile, core inflation softened to 1.4 percent from 1.7 percent in March due to lower services and retail and other goods inflation.

The MAS cited a more persistent disruption to global energy supplies or shortages in key intermediate inputs as upside risks to the inflation outlook.

For 2026, core inflation and overall inflation were projected to average 1.5 percent to 2.5 percent.

Last month, the MAS tightened its monetary policy citing sharp increases in energy prices amid escalating geopolitical tensions.