DBS, Maybank, UOB Lift Singapore GDP Forecasts to 4.3% on AI Spending Surge

Singapore's economic outlook has received a major upgrade from three of the city-state's top research houses, with DBS, Maybank, and UOB all raising their 2026 GDP growth forecasts on the back of surging AI investment and a construction boom. DBS Group Research now expects 4.3 per cent growth this year and 3 per cent in 2027, up sharply from previous estimates of 2.8 per cent and 2.3 per cent respectively.

Maybank Investment Bank was the most bullish, forecasting 4.6 per cent growth in 2026 — above the government's official 2 to 4 per cent range. The bank noted that strong first-quarter GDP growth of 6 per cent and robust global AI capital expenditure were more than offsetting headwinds from higher energy prices. UOB raised its forecast to 4 per cent from 3.2 per cent, projecting second-quarter GDP growth of 5 per cent year-on-year, with AI-related tailwinds expected to persist through at least Q3.

All three research houses cited the de-escalation of US-Iran tensions and the normalisation of energy flows through the Strait of Hormuz as key factors reducing downside risks. DBS specifically highlighted sustained global AI cycles, financial services momentum, and a construction boom underpin the positive outlook. UOB noted that easing Gulf tensions have meaningfully lowered growth headwinds for Singapore's export-dependent economy.

Why it matters for Singapore: Having three of the island's leading banks independently raise their forecasts in the same week sends a strong signal about the depth of Singapore's current economic momentum. The consensus upgrade covers AI infrastructure, financial services, construction, and trade — suggesting the recovery is not a one-sector story. For Singaporeans and businesses, the upgraded forecasts point to stronger job creation in tech-adjacent sectors and higher business investment through 2027.