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Singapore economy set to stay firm for rest of 2026 as AI boom offsets oil and tariff shocks, MAS says

Published July 27, 2026 at 8:02 AM UTC

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Singapore's economy is expected to remain resilient through the rest of 2026, with a booming artificial intelligence sector cushioning the blow from higher oil prices and new US tariffs, according to the Monetary Authority of Singapore (MAS). The central bank's latest assessment suggests that while the Iran conflict has pushed up inflation more than it has slowed growth, the drag from external shocks will be outweighed by AI-related investments and demand. This balanced outlook offers reassurance to businesses and households worried about global uncertainties. The MAS noted that the AI boom has driven strong demand for Singapore's semiconductor and data center industries, creating jobs and boosting exports. At the same time, oil price spikes from Middle East tensions are raising costs for transport and manufacturing, and new US tariffs on key trading partners are squeezing some export sectors. However, the overall impact on growth appears manageable. For everyday Singaporeans, this means inflation may stay elevated for a while, but job prospects in tech and related fields remain bright. The central bank emphasized that it will monitor both price pressures and growth risks closely, and stands ready to adjust policy if needed. What to watch next: whether the AI boom can sustain its momentum through 2027, and how global trade tensions evolve.