RHB Bank has announced that it is maintaining its full-year GDP growth projection for Singapore at 5% for 2026, with potential upside risks pushing it towards 5.4%. This decision is based on a stronger-than-expected year-to-date performance and a positive outlook for the rest of the year. The Monetary Authority of Singapore (MAS) has opted to maintain its current policy stance, keeping the Singapore dollar nominal effective exchange rate (S$NEER) on a +1.25% appreciation gradient.
Singapore’s GDP grew by 5.4% year-on-year in the third quarter of 2026, a slight moderation from the 6.2% growth recorded in the second quarter. This performance exceeded Bloomberg’s consensus estimate of 5.1% year-on-year growth. For the first three quarters of the year, Singapore’s GDP growth stood at 6%.
Barnabas Gan, Group Chief Economist and Head of Market Research at RHB Bank, noted that the MAS is expected to keep its policy parameters unchanged through the first half of 2027. However, there are risks of a further steepening of the appreciation slope to +1.50% by then.
The report highlights the resilience of Singapore’s economy amidst global uncertainties and suggests that the nation’s economic policies are well-positioned to support continued growth. As the year progresses, the focus will remain on monitoring economic indicators and adjusting forecasts as necessary.
