Singapore economy to 'slow' this year on prolonged Hormuz closure: PM

Published May 1, 2026 Updated May 1, 2026 10:12am

Singapore’s prime minister warned Friday that economic growth will slow this year and some countries may slip into recession as the Middle East keeps the Strait of Hormuz closed, reports Reuters.

In a May Day speech, Lawrence Wong said the war was not expected “to be over anytime soon” and supply disruptions may worsen in the months ahead.

“Here in Asia, we are especially affected because of our high dependence on energy and other critical supplies from the Gulf,” Wong said.

“Globally, inflation will rise, spreading from energy to food and then other essentials. Some economies may well slip into recession, and Singapore will feel the impact directly,” he said.

“Our growth this year will slow, and inflation will be higher, and all this will put real pressure on businesses, workers and households.”

He did not give any figures, but the trade ministry in February said it expected the economy to expand 2-4 per cent this year, a bump from its previous forecast of 1-3pc.

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