...Strong Fiscal and External Balances: Singapore's rating reflects its exceptionally strong fiscal and external balances, supported by large external and fiscal surpluses, high income per capita, prudent fiscal management and a favourable business environment. These strengths mitigate the economy's vulnerability to external shocks arising from its high degree of trade openness. Exports Support GDP: Fitch Ratings expects full-year GDP growth of 5.5% in 2026, supported by strong global artificial intelligence (AI)-related capex spending and a pipeline of public and private projects. Real GDP and merchandise exports expanded by 6.1% and 26.3% yoy, respectively, in 1H26. Construction activity rose strongly by 9.4% yoy in real terms. The Ministry of Trade and Industry in August upgraded its growth forecast for 2026 to 4.5%-5.5%, from 2%-4%. Medium-Term Growth to Slow: We expect growth to moderate to around 3% beyond 2026 from a high base and a projected slowdown in AI-related investment globally....
