Singapore: GDP seen expanding 6.5% in 2021 – UOB

Pablo Piovano FXStreet

Economist at UOB Group Barnabas Gan comments on the growth prospects for Singapore this year.

Key Quotes

“Based on the advance estimates by the Ministry of Trade and Industry (MTI), Singapore’s 2Q21 GDP expanded by 14.3% y/y (-2.0% q/q sa).”

“Manufacturing growth underpinned the overall economic recovery in 2Q21, expanding by 18.5% y/y… With the advance estimates for manufacturing growth at 18.5% y/y, this should translate into another stellar performance for industrial production in June 2021, where we expect it to grow by 27.4% y/y.”

“Encouragingly, the construction and services sectors expanded by 98.8% y/y and 9.8% y/y in 2Q21 respectively, as the economy recovers from the COVID-19 pandemic amid a very low base effect in 2Q20.”

“Singapore’s economy has been supported by the favourable export environment since the start of this year.”

“Accounting for the economic performance in 2Q21, Singapore’s economy has expanded by 7.4% y/y in the first half of 2021. Moreover, the growth pace in 2Q21 at 14.3% y/y (-2.0% q/q sa) has surpassed our call of +12.4% y/y (-3.6% q/q sa). Owing to the surprisingly strong performance in 2Q21 amid a rosier economic prognosis ahead, we upgrade our full-year 2021 growth outlook to 6.5%, from our prior forecast of 5.5%.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD advaces beyond 1.3450 after BoE decision, US Q2 GDP

GBP/USD gains positive momentum on Thursday, surpassing 1.3450 and trading at fresh multi-week highs. The Bank of England decided to maintain the benchmark rate unchanged at 3.75%. The MPC voted 6-3 to keep rates on hold, with the 3 dissenters favoring a rate hike. US Q2 GDP missing expectations helped the pair advance, while renewed US Dollar weakness across the FX board pushed the pair further up ahead of the monthly close.

EUR/USD confortable around 1.1530, highest in six weeks

The EUR/USD pair trades around 1.1530 in the American session on Thursday, reaching fresh six-week highs. The US Dollar is in sell-off mode, with multiple factors weighing on the American currency. Not only did the Federal Reserve vote divided to keep rates on hold on Wednesday, creating doubts about a September hike, but US Q2 GDP missed expectations. A suspected JPY intervention adds pressure on the Greenback.

Gold recovers the $4,100 level as US Dollar weakens further

Gold trades just above $4,100 amid a US Dollar sell-off. The Greenback enjoyed some near-term demand following Wednesday's post-FOMC downfall, but was unable to retain its gains. The preliminary estimate of the US Q2 GDP showed the economy grew at an annual rate of 1.5%, missing the market's expectations of 2.1%.

Ripple Price Forecast: XRP builds recovery momentum as whales increase exposure

Ripple (XRP) rises toward the pivotal $1.10 resistance on Thursday, marking three consecutive days of gains. This neutral-to-slightly bullish outlook follows the Federal Reserve (Fed) decision to leave interest rates unchanged in the 3.50%-3.75% range.

The FOMC: Rates left on hold; dollar falls as Warsh fails to vote for hike

The Fed kept interest rates on hold today, defying a 30% chance in the Fed Funds Futures market that rates would rise. The Committee voted 9-3 to keep rates on hold, with governors Kashkari, Hammack and Logan all voting to hike rates due to concerns about inflation. The immediate market reaction has been a sharp drop in the USD on a broad basis.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.