RHB Bank has maintained its 2026 full-year GDP growth forecast for Singapore at 4%, citing resilient economic activity despite ongoing external headwinds. The bank’s Group Chief Economist and Head of Market Research, Barnabas Gan, highlighted that robust exports and industrial production, driven by sustained demand for artificial intelligence (AI) technologies, are key factors supporting this outlook.
Singapore’s GDP expanded by 5.7% year-on-year in the second quarter of 2026, a slowdown from the 6.3% growth recorded in the first quarter. This figure, however, exceeded Bloomberg’s consensus estimate of 5.5% but fell short of RHB’s in-house projection of 6%. The report anticipates that the Monetary Authority of Singapore (MAS) will keep its policy parameters unchanged in the upcoming review before 31 July, as well as for the remainder of the year.
Gan’s analysis underscores the resilience of Singapore’s economy amidst global uncertainties. The sustained demand for AI-driven products has bolstered the country’s industrial production and export sectors, providing a buffer against external economic pressures.
Looking ahead, RHB’s steady GDP forecast reflects cautious optimism about Singapore’s economic trajectory. The bank’s insights suggest that whilst challenges persist, the underlying strength of key sectors could continue to support economic stability in the coming months.
