Singapore's GDP expanded 4.6% year-on-year in the first quarter of 2026, slowing from 5.7% growth in the previous quarter and missing economist forecasts of 5.9%, according to advance estimates from the Ministry of Trade and Industry. On a quarterly basis, the economy contracted 0.3%, with manufacturing output pulling back sharply despite gains in electronics and transport engineering, while construction was a bright spot, surging 9% year-on-year. Singapore's government warned that the ongoing Middle East conflict — which escalated with the outbreak of war involving Iran on 28 February — is likely to weigh on economic activity in coming quarters by raising energy costs, dampening trade, and squeezing demand across sectors including transport, tourism, and manufacturing.