Singapore, May 25 (QNA) - Singapore's economy grew six percent year-on-year in the first quarter as demand for artificial intelligence chips skyrocketed, balancing the fallout from the Middle East war.
As a major electronics hub, the country has seen a significant increase in the production of memory chips and server components that are essential for the data centers that power AI tools.
Due to the "better-than-expected" growth, Singapore's trade ministry said it would maintain its forecast for the economy to expand 2 to 4 percent in 2026. The first-quarter growth extended the expansion of 5.7 percent in the December 2025 quarter.
"AI-related demand has remained robust and should continue to support the growth of regional economies throughout the year," the trade ministry said.
According to statistics, exports for the first quarter rose 9.6 percent compared to the year before, bolstered by the electronics sector. (QNA)