Analysts at Standard Chartered note that Singapore’s economy expanded 1.2% y/y, lower than the advance print of 1.3%, as the downward revision in services (to 1.5% y/y from 2.1%) outweighed the upward revision to the manufacturing and construction advance prints.
“More importantly, the Ministry of Trade and Industry (MTI) narrowed the 2019 GDP growth forecast range to 1.5-2.5% from 1.5-3.5% previously, to account for weak Q1 growth. The forecast range for 2019 non-oil domestic exports (NODX) was also lowered to -2-0% from 0-2%.”
“The narrowing of the official GDP forecast to 1.5-2.5% was in line with earlier projections by the government. The Monetary Authority of Singapore (MAS) had noted in April that growth may come in slightly below the mid-point of the 1.5-3.5% forecast range (although one can argue the median forecast of 2% GDP growth now is more than a slight downgrade).”
“Regardless, the MAS’s monetary policy settings are now likely neutral given the growth and inflation outlook, rather than still slightly accommodative, in our view.”
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.