In the near term, it expects the global AI capital expenditure (capex) upcycle to continue apace, providing strong support for economies plugged into the electronics supply chain. AI boomThe central bank said the sustainability of the global AI boom will be a “key determinant” of Singapore’s overall GDP growth this year, alongside steady expansions in other sectors. Inflation outlookOn inflation, MAS raised its full-year 2026 forecasts for both core and headline inflation to 1 to 2 per cent, from 0.5 to 1.5 per cent previously. This represented a growth of 5 per cent from S$5,500 in 2024, slower than the 5.8 per cent growth recorded that year. MAS said the slower pace of wage growth in 2026 is “broadly in line with still-robust productivity growth, implying that unit labour cost growth will be relatively contained”.