Singapore raised its economic growth forecast for 2026 on Tuesday, citing stronger-than-expected global investment in artificial intelligence and a milder-than-feared impact from the Middle East conflict. The trade ministry now expects the economy to expand by 4.5%-5.5% this year, up from its previous forecast of 2.0%-4.0%, after second-quarter gross domestic product grew 5.9% from a year earlier, above the advance estimate of 5.7%. Singapore's economy expanded 6.1% in the first half of 2026, while GDP grew 1.4% in the April-June quarter from the previous three months on a seasonally adjusted basis, beating the advance estimate of 1.1%. The improved outlook is benefiting sectors tied to the global technology cycle, although industries exposed to supply disruptions linked to the Middle East conflict remain under pressure. The government does not expect the 12.5% U.S. tariff on Singaporean exports to have a significant impact, according to trade ministry permanent secretary Beh Swan Gin. Enterprise Singapore separately raised its 2026 forecast for non-oil domestic exports to 14%-16%, from 3%-5%. The Monetary Authority of Singapore indicated growth is likely to remain firm, though it identified the sustainability of the AI investment boom as a key risk. The central bank unexpectedly tightened monetary policy in late July, citing persistent inflation risks. The government announced a S$900 million support package last