RHB Bank has announced that it is maintaining its full-year GDP growth projection for Singapore at 4.5% for 2026. This decision comes as the country’s economic activity remains robust, bolstered by a strong export performance and sustained industrial production, despite ongoing external challenges. The bank’s Group Chief Economist and Head of Market Research, Barnabas Gan, highlighted these factors in their latest Global Economics and Market Strategy Report.
Singapore’s GDP grew by 5.9% year-on-year in the second quarter of 2026, a slight decrease from the 6.3% growth recorded in the first quarter. This figure was slightly below both Bloomberg’s and RHB’s estimates of 5.8% year-on-year growth. For the first half of 2026, the GDP growth stood at 6.1%.
In response to these economic conditions, RHB anticipates that the Monetary Authority of Singapore (MAS) will further tighten its policy in 2026. The bank expects the Singapore Dollar Nominal Effective Exchange Rate (S$NEER) appreciation gradient to increase to 1.50%, with potential for a further rise to 1.75% by the end of the year.
This forecast underscores the resilience of Singapore’s economy in the face of global uncertainties, with strong export and industrial sectors playing a crucial role in sustaining growth. The report suggests that continued policy adjustments by MAS will be key in navigating these challenges and maintaining economic stability.
