Singapore economists see 2026 growth at 5%, says CB survey

03/09/2026 03:33 AST

Economists polled by Singapore's central bank have upgraded their growth outlook for the country for 2026 while making slight cuts to their inflation forecasts, a survey showed on Wednesday. Around half of the respondents in the Monetary Authority of Singapore's September quarter survey cited a prolonged or escalating conflict in the Middle East as one of the major downside risks for the city-state, while 29.4 percent of the economists flagged the potential bursting of the AI bubble.

The survey was sent out in August with 25 economists and analysts responding. The median forecast for growth this year increased to 5 percent, up from 3.5 percent in the previous survey in June, with growth in 2027 projected at 3.1 percent, up from 2.5 percent. Singapore's economy grew 5.9 percent in the second quarter, beating expectations. In August, the trade ministry raised its growth forecast to 4.5 percent to 5.5 percent for 2026, from 2.0 percent to 4.0 percent.

Respondents forecast core inflation for 2026 at 1.9 percent and headline inflation at 2.1 percent, lower than the respective 2 percent and 2.3 percent projected in the previous survey.

Inflation rose 2.0 percent in July from a year earlier, and the central bank warned that it would stay elevated through the first half of next year. The central bank unexpectedly tightened monetary policy in late July, citing persistent inflationary risks from the Middle East conflict, which has driven up energy costs. Of the respondents, 45 percent expected the slope of the Singapore dollar nominal effective exchange rate (S$NEER) policy band to be increased at the October monetary policy review, while the rest said it was likely to remain unchanged.

Reuters