SINGAPORE--Experts surveyed by Singapore's central bank have trimmed their growth forecast for the year and raised inflation expectations, warning of geopolitical risks and the danger of an "artificial-intelligence bubble."
Economists and analysts now expect gross domestic product to expand 3.5%, the Monetary Authority of Singapore's June survey showed. That's slightly lower than the prior estimate of 3.6% and well below the 5.0% growth recorded in 2025.
Singapore's economy has held up better than expected at the start of 2026, even as the outlook deteriorated due to the fallout from the Middle East conflict, which threatens to drive up costs and slow growth.
The latest truce between the U.S. and Iran has raised hopes of a resumption of energy supplies via the Strait of Hormuz, but uncertainty remains high and it will take time for markets to recover from the shock. Re-escalation remains a risk.
In the MAS survey, respondents cited an escalation or prolonging of Middle East tensions as posing the biggest downside to Singapore's economic outlook.
