SINGAPORE, Oct. 15 (Xinhua) -- S&P Global Market Intelligence has projected Singapore's real gross domestic product (GDP) to grow 5.7 percent in 2026 before slowing to 4.6 percent in 2027.
The moderation reflects an expected normalization in artificial intelligence (AI)-related activity, tighter global financial conditions and softer external demand, the agency said in a note on Thursday.
The positive output gap is likely to narrow next year, although technology-related trade and investment should remain key growth drivers, it said.
Singapore's economy is expected to remain firm in the fourth quarter, but growth is likely to become less exceptional, it noted.
AI- and electronics-linked external-facing sectors should continue to provide support, while construction and financial services offer additional stability.
However, weaker retail and food services activity suggests domestic demand is less robust than headline GDP figures indicate.
Key risks include higher energy and food prices, Middle East-related shipping disruptions, elevated global interest rates and weaker global demand. Singapore's reliance on imported energy, intermediate inputs and external demand leaves it vulnerable to supply-chain disruptions, said S&P Global Market Intelligence.
A prolonged AI upcycle, however, could boost manufacturing, exports and trade-related services, it said. ■