Singapore's economy has demonstrated robust growth, expanding by 6% year-on-year in the first quarter of 2026, exceeding the Ministry of Trade and Industry's advance estimate of 4.6%. This growth is largely attributed to strong demand for AI chips, which has positively impacted the wholesale trade, manufacturing, and finance sectors. On a seasonally adjusted basis, the GDP increased by 1% from the previous quarter. Despite the positive growth, the ministry has maintained its growth outlook for the year at 2-4%, citing potential risks from rising energy and fertilizer prices due to the ongoing conflict in Iran, which has disrupted shipping routes in the Strait of Hormuz. The United Nations recently lowered its global growth forecast for 2026 to 2.5%, reflecting the broader economic implications of the conflict. Local economists express cautious optimism, with expectations for Singapore's full-year growth at around 3.6%, acknowledging the significant risks posed by global tensions.