Singapore’s economy grew by 5.4 per cent in the third quarter of 2026, down from the 6.2 per cent in the second quarter, according to preliminary data from the Ministry of Energy, Trade and Industry on Wednesday.
On a quarter-on-quarter seasonally-adjusted basis, gross domestic product rose 1.1 per cent, down from the 1.5 per cent growth in the second quarter.
The central bank said Singapore’s economy is expected to continue expanding steadily before the pace of AI-related activity eases in the second half of 2027.
The economy’s positive output gap this year is forecast to narrow through next year.
Core inflation in July and August rose to 2.1 per cent year-on-year, from 1.5 per cent in the second quarter of 2026.
MAS said core and overall inflation are expected to remain at current “slightly elevated levels” in the near term, and moderate over 2027.
It renewed its forecasts for core inflation to average between 1.5 per cent and 2 per cent for the whole of 2026, while overall inflation is expected to settle at 2 per cent.
The projected core and overall inflation for 2027 is an average of 1.5 to 2.5 per cent.
“For now, the risks to inflation remain tilted to the upside,” Singapore’s central bank said.
“MAS is well-positioned to respond effectively to any risk to medium-term price stability and will continue to closely monitor economic developments. ASIAONE
