Singapore's first-quarter economic performance far exceeds expectations as the AI boom boosts exports of electronic products.

Singapore's first quarter economic performance far exceeded expectations. The global artificial intelligence boom has driven growth in the country's manufacturing and service sectors, offsetting the drag from rising oil prices. The Ministry of Trade and Industry of Singapore announced on Monday that the seasonally adjusted GDP grew by 1% in the first quarter, well above the median estimate of 0.2% from a survey of media outlets. The Singapore government had previously forecasted a 0.3% contraction in GDP. Singapore's electronic product exports have benefited from demand related to artificial intelligence, which has helped the city-state withstand the energy shock caused by the Iran conflict to some extent. The Ministry of Trade and Industry of Singapore maintains its forecast of 2% to 4% GDP growth in 2026, consistent with the outlook released in February. In comparison, Singapore's economy grew by 5% last year. The Ministry of Trade and Industry stated in its declaration that if global capital expenditures related to artificial intelligence continue, they will continue to drive growth in the electronics and precision engineering industries. However, the Ministry of Trade and Industry also highlighted several risks, including continued disruptions to global energy supplies, a further increase in U.S. tariffs, and a sudden decline in global capital expenditures related to artificial intelligence.