Singapore's economy expands 5.7% in the second quarter, beating expectations

Singapore’s economy expanded 5.7% in the second quarter, topping market expectations, on the back of strong growth in the manufacturing sector.

The growth figure was higher than the 5.5% expected by economists polled by Reuters, but lower than the revised 6.3% seen in the first quarter, according to a release from the country’s Ministry of Trade and Industry.

The goods sector expanded 10.4% from the 8.4% in the previous quarter, while growth in the services sector slowed to 4.6% from 6.2% in the first quarter.

The advance GDP data comes as Singapore’s central bank prepares to announce its quarterly monetary policy decision later this month.

Instead of using interest rates,the city-state managesmonetarypolicyby influencing the Singapore dollar’s value against the currencies of its main trading partners within an undisclosed trading band, known as theSingaporedollar nominal effective exchange rate, or S$NEER.

The Singapore dollar traded at 1.294 against the greenback, marginally weaker after the data release.

The GDP data also comes as inflation in the city-state held steady at 1.8% in May, its joint-highest level since September 2024.

The MAS said in its CPI release that global energy prices remain elevated compared to 2025, forecasting that full-year inflation at 1.5%–2.5%.

In May, Singapore’s Ministry of Trade and Industry projected that GDP growth for 2026 would come in at 2%-4%, “although downside risks have risen significantly as a result of the US-Israel-Iran conflict,” it said.