Updated
Updated · VnExpress International · Jun 9
Singapore Economists Cut 2026 GDP Forecast to 3.3% as Middle East Conflict Lifts Inflation
Updated
Updated · VnExpress International · Jun 9

Singapore Economists Cut 2026 GDP Forecast to 3.3% as Middle East Conflict Lifts Inflation

1 articles · Updated · VnExpress International · Jun 9

Summary

  • Singapore economists lowered their 2026 full-year GDP forecast to 3.3% from 3.5%, and cut the second-quarter growth view to 3.9% from 4.5% in Bloomberg’s latest survey.
  • Inflation expectations moved the other way: headline inflation was raised to 2.3% and core inflation to 2.0%, both up from 1.5%, as energy and supply-chain disruptions spread beyond crude oil.
  • S&P Global’s Ahmad Mobeen said higher production costs will squeeze energy-intensive sectors, while uncertainty over trade flows may curb investment, production decisions and export orders in coming quarters.
  • Singapore kept its official 2026 growth forecast at 2% to 4% in May, but warned downside risks had increased even after the economy expanded a stronger-than-expected 6% year on year in the first quarter.

Insights

As inflation and supply shocks collide, are Singapore's policymakers running out of options to protect its economy?
With the Strait of Hormuz closed, is Singapore’s economic model fundamentally too vulnerable for this new era?