Singapore’s economy grew 4.6% year-on-year in the first quarter of 2026, easing from 5.7% in the previous quarter, and below expectations of 5.4%, advance estimates showed. Growth remained resilient but showed signs of moderation, with risks emerging from the US-Israel-Iran conflict that began in late February. Manufacturing growth slowed sharply to 5.0% from 11.4% in Q4, marking the steepest deceleration among major industries. Services also showed softer momentum, with growth at 4.7% from 4.8%, as wholesale & retail trade and transportation & storage edged down to 6.7% (vs 6.8%), and accommodation & food services, real estate and other services eased to 2.3% (vs 2.9%). In contrast, construction was the only sector to accelerate, rising 9.0% from 4.6%. On a quarterly basis, GDP shrank 0.3%, marking the first contraction since Q4 2022, but a smaller decline than the expected 0.5%.

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