Singapore’s economy grows more than 5 percent amid AI boom

What the report says

Singapore’s economy expanded 5.4 percent year on year in the July-to-September quarter, according to advance government estimates reported by Al Jazeera. The figures showed slower growth than the 6.2 percent recorded in the previous quarter, but still signaled continued strength for the high-income city-state as global demand for artificial intelligence-related technology supports activity.

Al Jazeera reported that manufacturing rose 7.5 percent, with the semiconductor-heavy sector supported by stronger output in electronics, precision engineering, transport engineering and general manufacturing. Construction also increased, with the article noting that some of the growth was linked to AI-related investment such as data centres. Those gains helped offset weakness in chemicals and biomedical production.

The report said Singapore’s central bank kept monetary policy unchanged on Wednesday, pointing to expectations that AI-driven demand will cool in 2027. The Monetary Authority of Singapore said it expects core inflation to average 1.5 to 2.0 percent in 2026. It also said that higher interest rates and a slowdown in AI-led growth could weigh on external demand later next year.

The article added broader context that Singapore remains a major global semiconductor hub and has outperformed many advanced economies. An economics professor quoted by Al Jazeera described the performance as impressive given the uncertain global backdrop, while noting that technology investment and electronics demand have supported the country’s supply-chain role.