By Amanda Lee and Fabiana Negrin Ochoa
Singapore's economic outlook has deteriorated due to the fallout from the Middle East conflict, but officials have stuck to their growth forecast for this year after a stronger-than-expected first quarter.
Like other economies, the city-state is facing an energy shock that threatens to squeeze corporate profits, curb demand and stoke inflation. The strain of that is starting to show, but offsetting tailwinds from artificial intelligence are keeping Singapore's economic momentum going for now.
On Monday, the Ministry of Trade and Industry said growth for the first three months of 2026 was revised upward to 6.0% on year--the strongest print in at least a year.
That marked a reversal from the slowdown to 4.6% seen in the initial gross domestic product estimates released in April, and beat consensus expectations.
