Singapore: 2020 GDP seen contracting 6.5% - UOB


Economist Barnabas Gan and Senior FX Strategist Peter Chia at UOB Group assessed the latest GDP figures in Singapore.

Key Quotes

“Singapore’s 3Q20 GDP contracted 7.0% y/y (+7.9 q/q sa), according to the advance estimates by MTI. With the latest GDP print, Singapore’s economy fell by 6.9% in the first three quarters of 2020.”

“Despite seeing three consecutive quarters of y/y contraction, the latest GDP print at -7.0% (+7.9% q/q sa) is significantly better compared to 2Q20 GDP which clocked -13.3% y/y (-13.2% q/q sa).”

“The overall GDP decline was dragged by sustained softness in the construction and services sector.”

“The manufacturing sector was a key bright spot, expanding at 2.0% y/y in 3Q20 and compared to a contraction of 0.8% y/y in 2Q20.”

“The latest GDP data in 3Q20 further confirms that Singapore’s economy has been improving since the trough in 2Q20. However, the pace of the recovery has been hampered by the continued softness in the construction sector amid a non-existent tourism demand which further dragged the services sector. As such, we downgrade Singapore’s full-year GDP growth to -6.5% in 2020, down from our initial outlook of -5.0%. Should the pace of recovery be sustained into 2021, the MAS will likely keep policy-parameters unchanged in its April 2021 meeting.”

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD bounces from 1.18 after robust German Manufacturing PMI

EUR/USD is trading above 1.18 after German Manufacturing PMI beat estimates. Other PMIs missed expectations. US fiscal stimulus and the election developments are eyed.

EUR/USD News

GBP/USD retreats amid mixed Brexit headlines

GBP/USD has retreated from the highs around 1.31 after UK minister Truss reiterated that the UK could leave without a deal. Ireland´s Coveney expressed more optimism. UK retail sales beat estimates while PMIs were mixed.

GBP/USD News

XAU/USD's reversal from $1,914 contained at $1,895 support area

Gold’s upside attempt witnessed during the Asian and European trading sessions has been halted at $1,914 on the Early US session as market sentiment plunged and the precious metal has dropped to find support at $1,895.

Gold News

Forex Today: Dollar clings to gains after the presidential debate, Bitcoin extends gains, PMIs eyed

The US dollar is holding onto Thursday's recovery, The presidential debate was more civilized than the previous one and post-event opinion polls are awaited. Earlier, hopes for a stimulus bill faded and allowed the dollar to recover. PMIs and COVID-19 statistics stand out on Friday.

Read more

WTI hits one-week low at $39.55 after Baker Hughes’ report

Front-month WTI futures’ reversal from day tops near $41 has extended to one-week lows at $39.55 on Friday after Baker Hughes reported that US oil and gas rigs increased to their highest level since May last week.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures