DBS Group: Middle East conflict drags down Singapore's energy-intensive industries, but AI supports trade; maintains 2.8% GDP growth forecast

(1) DBS Group senior economist Chua Han Teng stated in a report that due to supply disruptions caused by the Middle East conflict, Singapore's economic performance in 2026 is expected to be uneven.
(2) Thanks to the artificial intelligence (AI) boom, trade-related industries have performed well so far this year; however, energy-dependent sectors will continue to face pressure from supply constraints, with the outlook for the petrochemical sector remaining bleak in the coming quarters due to limited raw material supply.
(3) Nevertheless, DBS Group has maintained its forecast for Singapore's GDP growth in 2026 at 2.8%, within the official estimated range of 2.0% to 4.0%.