Singapore: GDP seen expanding 5.8% in 2021 – UOB
|Economist at UOB Group Barnabas Gas assesses the latest MAS Survey of Professional Forecasters.
Key Quotes
“In the latest MAS Survey of Professional Forecasters, respondents upgraded their median GDP outlook for 2021 to +5.8%, up from a previous forecast of +5.5%. Across sectors, a stronger recovery is expected for manufacturing, finance & insurance, and non-oil domestic exports. For 2022, GDP is expected to expand by 3.8%.”
“The survey results are in line with our expectations. Our forecast pencils Singapore’s GDP growth at +5.0% and +3.5% for 2021 and 2022 respectively. The positive growth outlook for Singapore is underpinned by the projected pickup in external demand, coupled with Singapore’s relatively well-controlled COVID-19 situation.”
“However, the economic recovery is likely to remain uneven for the year ahead. The construction and accommodation & food services clusters are expected to contract in the first quarter of 2021. Coupled with the slack in Singapore’s labour conditions, domestic consumption is likely to stay lacklustre in 1Q21 as well.”
“The survey also highlighted risks to Singapore’s growth prospects, which include (1) a deterioration in the COVID-19 situation, (2) a worsening geopolitical environment, and (3) a pre-mature pullback in global macroeconomic policy support.”
“Notwithstanding the downside risks, factors that may accelerate Singapore’s economic recovery include a faster-than-expected containment of the COVID-19 outbreak, strong manufacturing performance driven by electronics, and the eventual re-opening of borders to international travel.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.