Singapore Q3 GDP Growth Slows to 5.4% After Revised Prior-Quarter High

Singapore’s GDP grew 5.4% in the third quarter, slowing from a revised four-year high of 6.2% in the previous quarter but beating the 5% forecast as construction growth partly offset a manufacturing decline.

Manufacturing accounts for about 20% of Singapore’s GDP. The result followed stronger-than-expected growth in the first two quarters, supported by artificial intelligence-related sectors and exports.

Singapore raised its 2026 growth forecast in August to 4.5% to 5.5%, from an earlier range of 2% to 4%. It was the second time the country had upgraded its outlook this year.

The Monetary Authority of Singapore kept monetary policy steady after two consecutive rounds of tightening. It expects inflation to remain elevated in the near term amid higher energy and food prices, then ease from mid-2027 as import costs decline and domestic price pressures remain subdued.

Singapore does not set monetary policy through an interest rate. Instead, it manages the Singapore dollar against a basket of currencies linked to major trading partners, allowing the exchange rate to fluctuate within an undisclosed policy band.