Singapore’s Q2 Economic Growth Slows to 5.7% Despite Beating Forecasts, Influencing MAS Policy Outlook

• Singapore’s Q2 GDP grew 5.7%, beating 5.5% forecast.
• Growth decelerated from Q1’s 6.3%.
• Implications for upcoming MAS policy decision.

Singapore’s economy expanded by 5.7% in the second quarter, exceeding economists’ expectations of 5.5%. This growth, however, represents a deceleration from the revised 6.3% recorded in the first quarter. The manufacturing sector showed strong expansion, with the goods sector growing 10.4%, contributing to the overall performance. While an AI-driven export boost was noted, geopolitical tensions in the Middle East tempered the overall pace. This “solid but not strong” growth figure is seen as a key factor for the Monetary Authority of Singapore’s (MAS) upcoming policy decision, potentially limiting the central bank’s justification for further tightening, especially after its April move to guard against inflation.