- Singapore's strong 4.0% GDP growth in 2025 creates payback risks for 2026, as DBS economists anticipate GDP moderating to 1.8% as export front-loading effects fade.
GDP growth to slows to 1.8% amid “2Ts” headwinds in 2026
- The economy faces two critical headwinds – the "2Ts" of tariffs on trade-related sectors and the tech cycle – that will determine the extent of downside pressure. The technology sector faces risks from a maturing electronics upcycle, potential waning of AI momentum, and threatened US semiconductor tariffs. This is offset by the resilience of domestic-facing sectors alongside:
- - Read this at SGinvestors.io -
- a resilient financials sector as a trusted hub and positive equity market reforms, and
- robust construction activity driven by key public and private projects.
STI end-2026 target at 5,000
- We lift our end-2026 STI target to 5,000 (previously 4,880), on a higher valuation peg of 15.2x (+1.25 standard deviation) FY27F P/E. The implied 7.6% upside (from 4,646 on 31 Dec) suggests more modest gains ahead following 2025’s strong 22.7% gains and re-rating, driven by MAS reforms, safe-haven status, and US$2.3bn fund inflows.
- - Read this at SGinvestors.io -
Theme 1: Ride with secular large caps towards SG2040
- Read more at SGinvestors.io.
