Singapore’s economy expanded by 5.7% year-on-year in the second quarter of 2026, according to advance estimates released by the Ministry of Trade and Industry. This marks a slowdown from the 6.3% growth recorded in the first quarter. On a quarter-on-quarter basis, the economy grew by 1.1%, following a 1.3% increase in the previous quarter.
The manufacturing sector led the growth with a 12.2% year-on-year increase, up from 8.0% in the first quarter. This surge was primarily driven by strong demand for semiconductors and semiconductor manufacturing equipment, particularly in the electronics and precision engineering clusters. However, the chemicals and biomedical manufacturing clusters faced contractions due to feedstock disruptions linked to the Middle East conflict. The sector also saw a 5.3% quarter-on-quarter growth, rebounding from a 2.2% contraction previously.
In contrast, the construction sector’s growth slowed to 6.2% year-on-year, down from 12.9% in the first quarter, despite increased output in both public and private sectors. Quarter-on-quarter, the sector contracted by 2.1%, reversing the 7.4% growth seen earlier.
The services sectors showed mixed results. The wholesale and retail trade and transportation and storage sectors grew by 6.3% year-on-year, but contracted by 0.3% quarter-on-quarter. Meanwhile, the information and communications, finance and insurance, and professional services sectors expanded by 3.9% year-on-year and 1.7% quarter-on-quarter.
The preliminary GDP estimates, including detailed sectoral performance, will be further elaborated in the Economic Survey of Singapore in August 2026.
