RHB Bank has revised its full-year industrial production (IP) growth forecast for Singapore to 7.0%, up from the previous 4.0% estimate for 2026. This adjustment follows a stronger-than-expected performance in April, where Singapore’s IP surged by 17.6% year-on-year, significantly surpassing Bloomberg’s forecast of 12.0% growth.
The robust April figures, which also showed a 5.8% month-on-month seasonally adjusted increase, have led to expectations that Singapore’s full-year GDP could be revised upwards towards 4.0%, reaching the top end of the Ministry of Trade and Industry’s forecast range of 2.0% to 4.0%. Barnabas Gan, Group Chief Economist and Head of Market Research at RHB Bank, highlighted the positive outlook for Singapore’s trade and manufacturing sectors but cautioned that external global uncertainties remain a concern.
The upward revision in the IP forecast underscores the resilience of Singapore’s manufacturing sector amidst a challenging global environment. The April surge marks an acceleration from the revised 9.2% year-on-year rise recorded in March, indicating a strong recovery trajectory.
As Singapore continues to navigate external challenges, the revised projections reflect confidence in the country’s economic fundamentals. The ongoing monitoring of global uncertainties will be crucial in maintaining this positive momentum.
