Singapore growth slows to 5.7% in Q2 2026 despite manufacturing jump

Manufacturing expanded 12.2% as semiconductor demand stayed firm.

Singapore’s economy grew by 5.7% year-on-year (YoY) in the April to June period this year (Q2 2026), which was slower than the the 6.3% YoY growth recorded in the previous quarter.

However, Q2 2026’s gross domestic product (GDP) was slightly better than Q2 2025’s 5.4% YoY expansion, which was mainly driven by the strong manufacturing activity, according to advance estimates released by the Ministry of Trade and Industry (MTI) on 14 July. 

On a seasonally adjusted quarter-on-quarter (QoQ) basis, the economy expanded by 1.1%, following growth of 1.3% in the previous quarter. 

The manufacturing sector grew 12.2% YoY, up from 8.0% YoY in the first quarter. 

MTI said the increase was driven mainly by higher output in the electronics and precision engineering clusters, supported by continued demand for semiconductors and semiconductor manufacturing equipment linked to artificial intelligence. 

However, the chemicals and biomedical manufacturing clusters contracted, with the chemicals sector affected by feedstock disruptions caused by the conflict in the Middle East. 

The construction sector grew 6.2% YoY, slowing from 12.9% YoY in the first quarter. 

MTI said the sector was supported by higher public and private sector construction output. Services-producing industries expanded 4.6% YoY, down from 6.2% in the first quarter. 

Within the sector, wholesale and retail trade together with transportation and storage grew 6.3% YoY, supported by machinery, equipment and supplies wholesale trade and water transport.

The information and communications, finance and insurance, and professional services group grew 3.9% from a year earlier. Growth was supported by demand for IT and digital solutions, architectural and engineering services, and the banking and insurance segments. 

The remaining services sectors, comprising accommodation and food services, real estate, administrative and support services, and other services industries, grew 2.7% year-on-year, easing from 3.2% in the first quarter. 

All sectors recorded growth except food and beverage services. Real estate was supported by steady developer activity, whilst health and social services and education continued to grow. 

MTI said the advance estimates are based mainly on data from April and May and may be revised when more complete data becomes available. 

Preliminary second-quarter GDP estimates, including inflation, employment and productivity data, will be released in the Economic Survey of Singapore in August.