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Thanks to the global artificial intelligence boom, Singapore's manufacturing and service sectors were boosted in the first quarter, leading to better-than-expected economic expansion that offset the drag from rising oil prices. The Ministry of Trade and Industry in Singapore said on Monday that after seasonal adjustments, the country's GDP grew by 1% in the three months ending in March, far exceeding the government's pre-estimated contraction of 0.3% and also surpassing market expectations of a 0.1% growth. The ministry stated in a release, "Continued global AI-related capital expenditure should continue to be a key driver of growth in the electronics and precision engineering clusters within the manufacturing industry." However, the ministry also highlighted risks such as ongoing global energy supply disruptions, further escalation of U.S. tariffs, and a sudden drop in global AI-related capital expenditures. "The downside risks to the Singapore economy have significantly increased. The Ministry of Trade and Industry will continue to closely monitor developments and adjust GDP growth forecasts as necessary throughout the year," the ministry stated.