Singapore's Q3 GDP Growth Slows to 5.4% but Exceeds Expectations
In the third quarter of 2026, Singapore’s economic growth slowed slightly from a four-year high recorded in the previous quarter, with GDP expanding by 5.4%. This figure exceeded economists’ expectations of around 5%, as reported by Reuters. The city-state had raised its annual growth forecast earlier in August due to strong performance in AI-related sectors and robust exports during the first two quarters. Despite the slowdown, Singapore remains optimistic about full-year economic prospects, maintaining a projected GDP range of 4.5% to 5.5%. This is more than double the lower end of its initial growth forecast for the year (1%-3%). The Monetary Authority of Singapore has paused further monetary tightening after two consecutive rounds in April and July aimed at managing inflation risks from higher energy prices. Singapore’s unique approach to monetary policy involves adjusting the value of the Singapore dollar against a basket of currencies rather than using interest rates. This strategy allows for controlled exchange rate fluctuations within an undisclosed band.