Singapore’s economy beats expectations as gov’t warns of Iran war fallout

Singapore’s economy has grown faster than expected in the first three months of the year as furious demand for AI chips has outweighed the fallout of the US-Israel war on Iran. Singapore’s gross domestic product (GDP) expanded 6 percent year-on-year in the first quarter, the Ministry of Trade and Industry said on Monday, comfortably beating an official advance estimate of 4.6 percent. Recommended Stories list of 4 items end of list On a seasonally adjusted basis, GDP grew 1 percent from the previous quarter. The Trade Ministry said GDP growth was driven by strong performances of the city-state’s wholesale trade, manufacturing, and finance and insurance sectors. “In particular, robust AI-related demand led to growth in the machinery, equipment & supplies segment of the wholesale trade sector, as well as the electronics and precision engineering clusters within the manufacturing sector,” the ministry said in a statement. The ministry kept its 2026 growth outlook steady at between 2 and 4 percent despite “downside risks” from rising energy and fertiliser prices amid the closure of the Strait of Hormuz to most shipping. “These factors will weigh on global economic activity for the rest of the year,” it said. …