Singapore’s retail sales are projected to grow by 2% in 2026, according to RHB Bank’s latest Global Economics and Market Strategy Report. The report, attributed to Barnabas Gan, Group Chief Economist and Head of Market Research at RHB Bank, highlights the sector’s resilience in the face of economic headwinds expected in the latter half of the year.
Retail sales in Singapore saw a 4.8% year-on-year increase in March, a slowdown from February’s 8.3% rise. When excluding motor vehicles, the growth was 3.3% year-on-year, down from February’s 11.3% expansion. This deceleration is attributed to several factors, including geopolitical uncertainties, rising cost pressures, and a softening labour market.
Gan emphasised the cautious outlook for Singapore’s retail climate, noting that these factors could weigh on sales growth as the year progresses. Despite these challenges, the retail sector is expected to maintain its momentum in the near term.
The report also mentioned an upgraded GDP forecast for the first quarter of 2026, now anticipated to grow by 5.3% year-on-year. This adjustment reflects a more optimistic view of Singapore’s economic performance in the early part of the year.
As the retail sector navigates these challenges, stakeholders will be closely monitoring economic indicators and adjusting strategies to sustain growth amidst a complex global landscape.
