Singapore's economy lost momentum in the first quarter, performing worse than expected and showing initial signs of strain as Middle East conflicts began to pressure trade and manufacturing sectors. According to preliminary estimates released on Tuesday, the country's Gross Domestic Product (GDP) for the January-March period grew by 4.6% year-on-year. This compares to a revised growth of 5.7% in the fourth quarter and falls short of the 5.7% increase forecast in a media survey. On a seasonally adjusted quarter-on-quarter basis, the economy contracted by 0.3% in the first quarter. This contrasts with a revised growth of 1.3% in the previous quarter, while the survey had predicted a contraction of 0.75%. Singapore's Ministry of Trade and Industry stated, "While first-quarter GDP growth for 2026 remained resilient, the US-Israel-Iran conflict that escalated in late February may exert pressure on economic activity in the coming quarters."