SINGAPORE, April 14 — Singapore’s economy grew at a slower pace of 4.6 per cent year-on-year in the first quarter of 2026, slowing from 5.7 per cent in the previous quarter, according to advance estimates released by the Ministry of Trade and Industry (MTI) on Tuesday, reported CNA.

On a quarter-on-quarter seasonally adjusted basis, gross domestic product (GDP) contracted by 0.3 per cent, reversing the 1.3 per cent expansion recorded in the final quarter of 2025.

MTI said overall growth remained resilient in the first quarter, but warned that the ongoing Middle East conflict could weigh on economic activity in the months ahead.

The ministry added that the full set of preliminary GDP data, including sectoral breakdowns and updates on inflation, employment and productivity, will be released in the Economic Survey of Singapore in May.

Manufacturing slows after strong gains

The manufacturing sector grew 5 per cent year-on-year, easing sharply from 11.4 per cent in the previous quarter.

MTI said output gains in electronics, transport engineering and precision engineering helped support growth, offsetting declines in biomedical manufacturing, general manufacturing and chemicals.

On a quarter-on-quarter seasonally adjusted basis, manufacturing fell 4.9 per cent, compared with a 4.5 per cent expansion previously.

Construction accelerates

The construction sector expanded 9 per cent year-on-year, up from 4.6 per cent in the previous quarter, supported by stronger activity in both public and private projects.

Quarter-on-quarter, the sector grew 3.7 per cent, improving from 0.2 per cent previously.

Services maintain steady growth

The combined services, wholesale and retail trade, transport and storage sectors grew 6.7 per cent year-on-year, broadly stable compared with 6.8 per cent in the previous quarter.

All sub-sectors recorded expansion, with wholesale trade supported by machinery and equipment demand, while transport and storage benefited from storage and support services.

On a quarter-on-quarter basis, the group grew 1 per cent, slowing from 1.8 per cent in the previous quarter.

Finance, ICT and professional services edge higher

The information and communications, finance and insurance, and professional services sectors grew 3.9 per cent year-on-year, slightly higher than the 3.7 per cent recorded previously.

MTI said information and communications was lifted by continued demand for IT and digital services, while professional services were supported by head offices and accounting-related activities.

Finance and insurance growth was driven mainly by banking and insurance performance.

However, on a quarter-on-quarter basis, the group contracted 4 per cent, reversing a 4.6 per cent expansion in the previous quarter.

Other services slow but remain positive

Other services, including accommodation and food services, real estate, and administrative support, grew 2.3 per cent year-on-year, easing from 2.9 per cent previously.

MTI said all segments still recorded growth, with real estate supported by steady developer activity, while health, social services and education remained resilient.

On a quarter-on-quarter basis, the group edged up 0.1 per cent, rebounding from a 0.4 per cent contraction.

Outlook

Deputy Prime Minister Gan Kim Yong, who is also Trade and Industry Minister, said last week that the conflict involving Iran is expected to slow economic activity and push up prices.

He warned that sectors dependent on natural gas, crude oil and derivatives, as well as energy-intensive industries such as electronics and precision engineering, would be among the most affected.

Higher costs and weaker demand are also expected to hit air and sea transport and tourism, while domestically focused sectors may face rising operating expenses.

Singapore had earlier upgraded its full-year GDP growth forecast to between 2 and 4 per cent, following stronger-than-expected 5 per cent growth in 2025. That forecast was made before the outbreak of the conflict on February 28.