Singapore's Ministry of Trade and Industry reported 6% year-on-year GDP growth for Q1 on May 25, with the 2026 forecast unchanged at 2-4%. Growth was driven by wholesale trade, manufacturing, and finance and insurance sectors. The data showed 1% quarter-on-quarter expansion, below the prior quarter's 1.3%.
No left-leaning sources covered this
No right-leaning sources covered this
The maintained 2-4% forecast despite strong Q1 growth reflects caution amid global risks, with gains concentrated in high-skill sectors that primarily benefit multinationals and top earners.
“Uneven distribution of AI-driven gains and need for broader redistribution and wage policies”
Holding the forecast steady demonstrates fiscal discipline and the strength of Singapore's low-tax, business-friendly model in delivering private-sector-led growth.
“Market-oriented policies outperform government stimulus and industrial planning”
The 6% expansion stems from voluntary exchange and price signals in AI-related electronics, wholesale trade, and finance rather than state directives.
“Dispersed knowledge and entrepreneurship drive outcomes more effectively than central coordination”
All perspectives accept the headline 6% figure and AI narrative without examining the 1% quarter-on-quarter slowdown or the structural role of forced savings, housing allocation, and immigration controls.
“Forecast maintenance may embed expected second-half weakness and external demand dependence not addressed by any side”
Ratings by MBFC