Singapore’s economy grew 4.6% year-on-year in the first quarter of 2026, based on advance estimates released by the Ministry of Trade and Industry. Growth slowed from 5.7% in the previous quarter, indicating weaker momentum at the start of the year.
On a quarter-on-quarter basis, the economy contracted by 0.3%. This reversed the 1.3% expansion recorded in the fourth quarter of 2025.
The report highlights geopolitical risks as a key concern. The US-Israel-Iran conflict that began in late February could affect economic activity in the coming months.
The advance estimates are based mainly on data from January and February. This means the full impact of recent developments may not yet be reflected in the numbers.
Manufacturing grew 5.0% year-on-year in the first quarter. Growth slowed significantly from 11.4% in the previous quarter.
The sector was supported by electronics, transport engineering, and precision engineering. Output declined in biomedical manufacturing, general manufacturing, and chemicals. On a quarter-on-quarter basis, manufacturing contracted by 4.9%.
Construction expanded 9.0% year-on-year in the first quarter. Growth accelerated from 4.6% in the previous quarter.
The increase was supported by higher activity in both public and private sector projects.
On a quarter-on-quarter basis, construction grew 3.7%. This indicates stronger short-term performance compared to other sectors.
Services producing industries grew 4.7% year-on-year in the first quarter. Within services, performance differed across segments.
Wholesale and retail trade, as well as transportation and storage, grew 6.7%. Growth was driven by machinery and equipment trade and logistics-related activities.
Information and communications, finance and insurance, and professional services grew 3.9%. Growth was supported by demand for IT services, as well as banking and insurance activity.
Accommodation and food services, real estate, and other services grew 2.3%. Growth was supported by real estate activity and steady demand in education and healthcare.
Quarter-on-quarter data shows a different trend compared to year-on-year growth.
Overall GDP contracted by 0.3%. Goods producing industries declined by 3.1%. Manufacturing fell by 4.9%.
Services grew by 0.6%. Wholesale and retail trade, as well as transportation and storage, grew by 1.0%.
Information and communications, finance and insurance, and professional services contracted by 4.0%.
Accommodation and food services, real estate, and other services grew slightly by 0.1%.
Construction remained one of the few sectors with strong quarterly growth at 3.7%.
The data shows mixed performance across sectors. Construction recorded strong growth. Services remained stable. Manufacturing slowed.
Year-on-year growth remains positive across most sectors. Quarter-on-quarter data shows weaker momentum in several segments.
This suggests that underlying economic activity is uneven.
Outlook for 2026
The economy continues to expand but at a slower pace. External risks remain a concern.
The advance estimates provide an early indication of performance. More detailed data will be released in May 2026 in the Economic Survey of Singapore.
The outlook will depend on global conditions, trade activity, and sector performance in the coming quarters.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri
