Singapore third-quarter GDP growth softens from four-year high but beats estimates

Singapore's economic expansion decelerated in the third quarter of 2026, with GDP growth dropping to 5.4% after hitting a four-year high in the last quarter.

However, the GDP print beat expectations of a 5% growth from economists polled by Reuters.

Singapore back in August had lifted its annual economic growth forecast as AI-related sectors and exports powered its economy to beat expectations for the first two quarters of the year.

GDP growth for 2026 is now expected to come in at 4.5% to 5.5%, more than double the lower end of its previous forecast of 2%-4%.

This has been the second time Singapore has upgraded its growth estimates. At the start of the year, the country's ministry of trade and industry had estimated growth at 1%-3%.

The GDP numbers come as the Monetary Authority of Singapore held its monetary policy steady, marking a pause after two straight rounds of tightening.

The city-state had tightened its policy in back to back in April and July, citing inflation risks due to higher energy prices.

Singapore does not use an interest rate to set monetary policy. Instead, it manages the Singapore dollar against a basket of currencies belonging to the country's major trading partners, allowing the exchange rate to fluctuate within an undisclosed policy band.

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