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UOB\u2019s Senior Economist Alvin Liew reviews Singapore\u2019s latest industrial production data and maintains the 2026 GDP<\/a> growth forecast at 3.6%, with 2027 at 2.0%. The bank highlights broad-based weakness in February IP, despite continued AI-related support for electronics. It now judges that downside risks to Singapore\u2019s growth outlook<\/a> have increased, particularly via manufacturing and trade channels.<\/p>\n “Singapore\u2019s industrial production (IP) weakened more than expected in Feb and contracted by -7.2% m\/m sa, translating to a -0.1% y\/y decline, against Bloomberg consensus\u2019 and our forecast of -0.8% m\/m, +14.1% y\/y.”<\/p>\n “We maintain our 2026 GDP growth forecast for Singapore at 3.6% for now (2027: 2.0%); however, we now assess that risks are likely tilted towards the downside.”<\/p>\n “While Singapore\u2019s GDP growth continues to benefit from AI-related momentum in early 2026, downside risks could intensify should the US\/Israel\u2013Iran conflict persist for longer (beyond one quarter), primarily through a sharp drag on the manufacturing sector (~21% of GDP), with adverse spillovers to the wholesale trade (~13% of GDP) and transportation & storage (~6% of GDP) sectors.”<\/p>\n “External demand may be dampened by weaker sentiment and supply-chain disruptions, which in turn would weigh on Singapore\u2019s exports.”<\/p>\nIP weakness clouds GDP outlook<\/h2>\n