Berita 24 English - According to a Reuters poll of experts, Singapore's economy is anticipated to have expanded by 0.9 per cent year on...
Berita 24 English - According to a Reuters poll of experts, Singapore's economy is anticipated to have expanded by 0.9 per cent year on year in the first quarter, an improvement from prior predictions, owing to stronger-than-anticipated manufacturing performance.
This compares to the government's advance predictions of a 0.2 per cent increase in gross domestic product.
Singapore's central bank forecasts economic growth to exceed the top half of the official 4–6 per cent prediction range, reviving the economy from the worst recession on record in 2020 caused by the COVID-19 pandemic.
"The strong upgrade reflects March industrial production results...and we believe there is additional upside potential in trade-related services sectors," said Alex Loo, macro strategist at TD Securities.
The manufacturing and trade-related services sectors would continue to fuel this year's GDP growth, he said.
The city-state is frequently regarded as a barometer of global growth because international trade dwarfs its domestic economy.
Economists estimate industrial production to gain 3.4 per cent year on year in April, the sixth consecutive month of growth and following a better-than-expected 7.6 per cent expansion in March. Tuesday will bring the most recent data.
When the central bank meets in October for the second of its semi-annual policy statements, it is widely expected to retain its accommodative stance.
"We are hopeful that the recovery in global demand will continue to underpin Singapore's export-led growth for the remainder of the year," said Prakash Sakpal, ING's senior economist for Asia.
However, the economy is in a state of uncertainty due to the worldwide and local coronavirus outbreaks.
Singapore reinstated some restrictions on social gatherings this month, the strictest since the country emerged from a lockdown last year, in response to a recent surge in local COVID-19 cases.
According to economists, such restrictions will exacerbate weakness in the services, tourism, and construction industries.
