# Singapore's Q2 Economic Growth Slows to 5.7% Amid Geopolitical Tensions

*Singapore's economy expanded by 5.7 percent in the second quarter, down from 6.3 percent in the previous quarter.*

July 14, 2026 · business

Singapore's economic growth slowed in the second quarter, with a 5.7 percent expansion compared to 6.3 percent in the previous three months, according to advance estimates from the trade ministry. The slowdown comes as geopolitical tensions temper gains from the artificial intelligence boom. Manufacturing, driven by strong AI-related demand for semiconductors and semiconductor manufacturing equipment, was the main growth driver, climbing 12.2 percent year on year. However, contractions in the chemicals and biomedical clusters, partly due to feedstock disruptions from the Middle East conflict, offset some of this growth.

## FAQs

{"question":"What drove Singapore's economic growth in the second quarter?","answer":"The main driver was manufacturing, which grew by 12.2 percent year on year, largely due to strong AI-related demand for semiconductors and semiconductor manufacturing equipment."}

{"question":"Why did Singapore's growth slow in the second quarter?","answer":"The slowdown was partly due to contractions in the chemicals and biomedical clusters, which were impacted by feedstock disruptions arising from the conflict in the Middle East."}

{"question":"How has the global AI boom affected Singapore's economy?","answer":"The AI boom has increased demand for chips, data centre equipment, and other technology products, benefiting Singapore's export-oriented economy."}

{"question":"What is the government's forecast for Singapore's economic growth in 2026?","answer":"The government maintained its 2026 growth forecast at between 2.0 and 4.0 percent."}

## Sources

- BSS

---
Source: https://pulsetoday.com.bd/en/business/singapore-economic-growth-slows-second-quarter