Singapore has sharply upgraded its 2026 economic growth forecast, citing stronger global artificial intelligence investment, resilient external demand and a less severe economic impact from the Middle East conflict than initially expected. The Ministry of Trade and Industry now expects Singapore GDP growth of 4.5%-5.5% in 2026, up from its previous forecast of 2.0%-4.0%. Officials said the global AI investment boom has been stronger than anticipated, improving prospects for Singapore industries linked to the technology cycle. The government also expects limited economic impact from the 12.5% U.S. tariff on Singapore exports, according to Trade Ministry Permanent Secretary Beh Swan Gin. Enterprise Singapore also significantly raised its non-oil domestic exports (NODX) forecast, predicting growth of 14%-16% in 2026 compared with its previous estimate of 3%-5%.