Singapore's economy grew 5.4% in Q3 2026, down from 6.2% in Q2

Manufacturing growth slowed to 7.5%, while construction expanded at a faster pace of 8.8%, according to advance estimates from MTI.

Singapore’s gross domestic product (GDP) grew by 5.4% year on year in the third quarter of 2026, moderating from the 6.2% growth recorded in the previous quarter, according to advance estimates released by the Ministry of Trade and Industry (MTI).

On a quarter-on-quarter seasonally adjusted basis, the economy expanded by 1.1%, easing from 1.5% in the second quarter.

Manufacturing growth slows as construction picks up

The manufacturing sector grew by 7.5% year on year in the third quarter, slower than the 12.9% growth recorded in the preceding quarter. According to MTI, growth was supported by output expansions in the electronics, precision engineering, transport engineering, and general manufacturing clusters. These gains outweighed output declines in the chemicals and biomedical manufacturing clusters.

On a quarter-on-quarter seasonally adjusted basis, manufacturing contracted by 0.9%, reversing the 6.3% expansion in the second quarter.

Meanwhile, the construction sector grew by 8.8% year on year, increasing from 6.1% in the previous quarter as output increased in both the public and private sectors.

Wholesale trade and transport drive services growth

The wholesale and retail trade, and transportation and storage sectors collectively grew by 8.0% year on year in the quarter, extending the 6.9% growth recorded in the previous quarter.

All sectors within this group expanded except retail trade. Wholesale trade growth was led by the machinery, equipment and supplies segment, alongside a robust increase in electronics exports over the same period.

Growth in transportation and storage was largely supported by the water and air transport segments. Looking at the quarter-on-quarter figures, the group grew by 2.2%, improving from flat growth in the second quarter.

Information and communications, finance and professional services expand

The group comprising information and communications, finance and insurance, and professional services grew by 4.3% year on year in the third quarter, easing from 5.1% in the previous quarter. All three sectors recorded growth.

The information and communications sector was driven by IT and information services, while growth in professional services was largely supported by architectural and engineering, technical testing and analysis services.

In finance and insurance, growth was led by fund management and banking services. When seasonally adjusted, the quarter-on-quarter expansion stood at 0.4%, moderating from 2.8% in Q2.

Accommodation supports growth across other services

The remaining services sectors, comprising accommodation and food services, real estate, administrative and support services, and other services industries, grew by 2.1% year on year in the third quarter, compared with 2.4% in the preceding quarter.

All sectors within this group expanded except food and beverage services. At the same time, the accommodation sector grew on the back of increased gross lettings in higher value-added hotel segments.

On a quarter-on-quarter seasonally adjusted basis, the group expanded by 0.6%, easing from 0.8% in the second quarter.

Full Singapore GDP figures due in November 2026

The preliminary GDP estimates for the third quarter of 2026, including sectoral performance, sources of growth, inflation, employment and productivity, will be released in the Economic Survey of Singapore in November 2026.

For the full report on Singapore’s economic performance, sectoral growth and key growth drivers, click here.

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