Singapore's economy grew faster than initially estimated in the first quarter, and the government maintained its full-year growth forecast, although it warned that risks from the U.S.-Israel-Iran conflict had risen sharply.
Singapore's trade ministry said first-quarter gross domestic product expanded 6.0% year-on-year in the January-March quarter, above economists' forecast of 4.6% and faster than the previous quarter's 5.7% growth.
On a seasonally adjusted quarter-on-quarter basis, the economy grew 1.0%, easing from 1.3% in the prior quarter.
Singapore maintained its 2026 GDP growth forecast at 2.0% to 4.0%, though the Ministry of Trade and Industry warned downside risks had "risen significantly" because of the U.S.-Israel-Iran conflict.
The ministry said robust AI-related demand boosted the electronics and precision engineering clusters, while the machinery and equipment trade also strengthened.
Manufacturing grew 7.9% year-on-year in the first quarter, while wholesale trade expanded 11.7%. Finance and insurance rose 5.7%.
However, higher oil prices and shortages linked to disruptions around the Strait of Hormuz hurt chemicals and fuels-related activity, with some petrochemical firms declaring force majeure and refineries cutting operating rates.
The ministry warned prolonged energy supply disruptions and tighter global financial conditions could weigh on growth later this year.
