In a significant economic development, Singapore’s economy expanded by 6.0% in the first quarter of 2026 compared to the same period last year. This growth surpassed the initial government estimate of 4.6%, according to data released on Monday.

Quarterly Growth and Economic Forecast

On a quarter-on-quarter basis, Singapore’s gross domestic product (GDP) increased by 1.0% from January to March. This is a notable improvement from the advance estimate, which had predicted a 0.3% contraction. The Ministry of Trade and Industry has maintained its annual growth forecast at 2.0% to 4.0%, despite acknowledging the heightened risks posed by ongoing conflicts in the Middle East.

As a small, trade-dependent nation, Singapore is particularly susceptible to disruptions in global supply chains and fluctuations in energy prices. These factors have been exacerbated by the geopolitical tensions, which have also impacted global growth and inflation trends.

Inflation and Monetary Policy Adjustments

Inflation remains a concern, with core inflation having risen by 1.7% in March from the previous year. Economists anticipate a similar inflation rate for April, with data expected to be released soon. In response to the potential inflationary pressures from the conflict involving Iran, Singapore’s central bank took the step of tightening monetary policy last month. This decision followed a period of steady policy across three previous meetings in January, October, and July, and a policy easing in April of the previous year.

The Monetary Authority of Singapore has also revised its inflation forecasts for 2026, raising both core and headline inflation expectations to a range of 1.5% to 2.5%, up from the previous 1.0% to 2.0% range.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.