Singapore Q3 GDP grows 5.4% on AI boom, second only to Taiwan
Singapore's advance estimates show third-quarter GDP rose 5.4% year on year, slower than the second quarter's 6.2% but still strong, with manufacturing up 7.5% and construction up 8.8% as data-centre building provided a key lift. The Economic Development Board says about 10% of the world's chips and roughly 20% of semiconductor equipment are made in Singapore, where semiconductors account for about 6% of GDP, with Micron, GlobalFoundries and UMC among the manufacturers based there. The Monetary Authority of Singapore said tech-related industries contributed about 75% of the quarter's year-on-year growth, and forecast that AI-related orders and capacity expansion will keep supporting growth for now while global AI-driven activity may cool towards the second half of 2027; it also warned that persistent inflation and high interest rates could weigh on consumption and investment. The IMF expects Singapore's full-year growth to reach 5%, behind only Taiwan among advanced economies.
It shows AI investment has become a core growth driver for Asian economies such as Singapore, while exposing their reliance on the tech cycle.