# Singapore’s Growth Forecast for 2026 Revised Downward

- Link: https://www.thailand-business-news.com/asean/singapore/246184-singapores-growth-forecast-for-2026-revised-downward
- Published: 2025-10-11T09:10:00+07:00
- Author: News Desk

**We maintain a 2025 growth forecast of 2.5%, but have cut 2026 expectations from
1.5% to 1.2% due to weaker growth in the US and Mainland China.**

**Key View**

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 * We maintain our 2025 growth forecast at 2.5%, with exports set to fall sharply
   after the boost from front loading fades.
 * We have revised down our 2026 growth forecast from 1.5% to 1.2%, reflecting weaker
   growth prospects in both the US and Mainland China than we expected at the start
   of 2025. 

**We maintain our 2025 growth forecast at 2.5%.** Revised GDP data showed that growth
picked up from 4.1% in Q1 to 4.4% in Q2, slightly above the advance estimate of 
4.3%. This brought H1 growth to 4.3% y-o-y, but the outlook for the rest of the 
year appears less robust.

Singapore’s economic outlook for 2026 has seen a downward revision, reflecting a
more cautious stance amidst global uncertainties. The Ministry of Trade and Industry(
MTI) recently adjusted its growth forecast, anticipating a more moderate expansion
compared to previous projections. This adjustment is influenced by a complex interplay
of factors, including slower-than-expected recovery from global supply chain disruptions
and ongoing geopolitical tensions.

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The revised forecast highlights challenges facing key sectors, such as manufacturing
and trade. As global demand fluctuates, Singapore’s export-driven economy may experience
additional pressures. Analysts suggest that these conditions could hinder the anticipated
growth momentum previously expected for 2026, prompting a reassessment of strategies
within the business community and government policy makers alike.

In response to this revised outlook, stakeholders are urged to adopt a proactive
approach. Investment in technology and workforce development could provide necessary
enhancements to productivity. Singapore’s commitment to innovation and sustainable
growth remains critical for navigating these challenges, aiming to secure economic
resilience in the face of an evolving global landscape.
[Read More](https://www.fitchsolutions.com/bmi/country-risk/singapores-2026-growth-forecast-revised-down-08-09-2025)