Economy grows to 4.6% in Q1, though Middle East conflict clouds outlook

Manufacturing growth slowed to 5%, while construction rose by 9%.

Singapore’s economy grew by 4.6% year-on-year (YoY) in the first quarter of 2026 (Q1), easing from the 5.7% expansion recorded in the previous quarter, according to the Ministry of Trade and Industry Singapore (MTI).

However, the MTI said that the US-Israel-Iran conflict, which began at the end of February, may affect economic activity in the coming quarters.

On a quarter-on-quarter seasonally-adjusted basis, the economy contracted by 0.3%, a reversal from the 1.3% growth in the fourth quarter of 2025.

The manufacturing sector rose by 5% YoY in Q1, slower than the 11.4% growth in the preceding quarter. In contrast, the construction sector grew by 9% from 4.6%.

Amongst services, the wholesale & retail trade and transportation & storage sectors recorded combined growth of 6.7%, slightly below the 6.8% expansion in the prior quarter.

The group of sectors comprising the information & communications, finance & insurance and professional services sectors increased by 3.9% from 3.7%.

The remaining services sectors — including accommodation & food services, real estate, administrative & support services, and other services industries — grew by 2.3%, easing from 2.9% in Q4 2025.

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