People walk during lunch time at the financial business district of Raffles Place in Singapore on May 19, 2026. (AFP/Roslan Rahman)
Singapore's economy grew 6 percent year-on-year in the first quarter as demand skyrockets for artificial intelligence chips, balancing the fallout from the Middle East war, the government said Monday.As a major electronics hub, the city-state has seen a significant increase in the production of memory chips and server components that are essential for the data centres that power AI tools.
Due to the "better-than-expected" growth, the trade ministry said it would maintain its forecast for the economy to expand 2 to 4 percent in 2026.
That is despite the impact wrought on economies worldwide by the conflict in the Middle East.
The ministry warned that "downside risks to Singapore's economic outlook have risen significantly", saying it would monitor global developments and adjust forecasts if necessary.
