Singapore’s economic outlook for the first quarter of 2026 has been upgraded by RHB Bank, with the Group Chief Economist and Head of Market Research, Barnabas Gan, forecasting a 5.3% year-on-year growth in GDP. This revision comes in light of stronger-than-expected industrial production (IP) figures, which surged by 10.1% in March, significantly exceeding Bloomberg’s forecast of 6.0% growth.
The Ministry of Trade and Industry (MTI) had previously estimated a 4.6% GDP growth for the same period. Despite the upward revision, RHB maintains its full-year GDP projection at 3.0%, with a 4.0% growth forecast for industrial production, acknowledging modest upside risks.
Gan highlighted the positive trajectory of Singapore’s manufacturing sector but cautioned about the potential impact of ongoing global trade policy uncertainties and geopolitical tensions. These factors, he noted, require vigilant monitoring as they could influence future economic performance.
The report underscores the resilience of Singapore’s economy amidst external challenges, with the March IP figures marking a notable acceleration from February’s revised 3.3% growth. This robust performance is a key driver behind the revised GDP forecast.
As Singapore navigates these complexities, the revised forecast reflects confidence in the country’s economic fundamentals, whilst also acknowledging the need for continued vigilance in the face of external uncertainties.
