Singapore’s economy expanded by 4.6% year-on-year in the first quarter of 2026, according to advance estimates released by the Ministry of Trade and Industry. This marks a slowdown from the 5.7% growth recorded in the previous quarter. On a quarter-on-quarter basis, the economy contracted by 0.3%, reversing the 1.3% expansion seen in the last quarter of 2025.
The Ministry highlighted that the ongoing US-Israel-Iran conflict, which began in late February, could weigh on economic activity in the coming months. The conflict’s potential impact on global trade and supply chains may pose challenges for Singapore’s open economy.
Sectoral performance varied, with the manufacturing sector growing by 5.0% year-on-year, driven by expansions in electronics, transport engineering, and precision engineering. However, the sector contracted by 4.9% quarter-on-quarter. The construction sector saw a robust 9.0% year-on-year growth, supported by increased public and private sector construction activities.
In the services sector, wholesale and retail trade, along with transportation and storage, grew by 6.7% year-on-year. The information and communications, finance and insurance, and professional services sectors expanded by 3.9% year-on-year, although they contracted by 4.0% quarter-on-quarter.
The Ministry of Trade and Industry will release more comprehensive GDP data, including sectoral performance and other economic indicators, in the Economic Survey of Singapore in May 2026.
