AI boom prompts economists to lift 2026 growth forecasts beyond MTI’s upgraded 4.5-5.5% range

Private-sector economists have raised their full-year growth forecast for Singapore after the official forecast was raised to 4.5-5.5 per cent from 2-4 per cent, with at least one bank's revised forecast above the top end. The revision follows a better-than-expected first half of 2026, during which the economy expanded 6.1 per cent year on year, driven by AI-related investment in electronics, semiconductor, and precision engineering sectors.

AI boom prompts economists to lift 2026 growth forecasts beyond MTI’s upgraded 4.5-5.5% range Regional economies have also bumped up their growth expectations amid the stronger-than-expected surge SINGAPORE Private-sector economists have raised their full-year growth forecast for Singapore, after the official forecast was raised to 4.5 to 5.5 per cent https://www.businesstimes.com.sg/singapore/singapore-raises-2026-growth-forecast-4-5-5-5-q2-growth-revised-5-9 , from 2 to 4 per cent previously – with at least one bank’s revised forecast sitting above the top end of the upgraded range. The revision, announced on Tuesday Aug 11 , comes on the back of a better-than-expected first half of 2026, during which the economy expanded 6.1 per cent year on year. Economists largely attributed the stronger-than-expected performance to AI-related investment in the region’s electronics, semiconductor and precision engineering sectors, which fed through to Singapore’s manufacturing and export-linked industries.