Singapore: Growth profile raised – DBS

FXStreet Insights Team FXStreet

DBS Group Research economist Chua Han Teng upgrades Singapore’s Gross Domestic Product (GDP) outlook, noting that Singapore’s economy has remained resilient to renewed geopolitical shocks from the Middle East conflict. DBS now projects real GDP growth of 4.3% in 2026 and 3.0% in 2027, supported by strong first-half performance, reduced stagflationary risks from US-Iran de-escalation, and ongoing momentum in AI, financial services and construction.

DBS lifts medium-term growth forecasts

"Singapore’s economy has weathered resiliently the renewed geopolitical shocks stemming from the war in the Middle East since its onset in late February."

"Economic growth likely ended 1H26 in solid shape, providing positive carryover effects into 2H26."

"We raise our real GDP growth forecasts for 2026 and 2027 to 4.3% and 3.0%, respectively (from 2.8% and 2.3%)."

"As we enter 2H26, the managed de-escalation of US-Iran tensions, initiated by an interim peace deal, reduces the risks of escalating input cost pressures, persistent severe supply chain disruptions, and significantly weakened external demand in the coming months."

"We are dialling up our growth profile over the next few quarters, although this will be tempered by high base effects."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.