Economists expect Singapore economy to grow 0.9% in Q1
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Singapore's economy is expected to have grown 0.9 per cent in the first quarter on a year-on-year basis, an improvement from earlier estimates, due to stronger-than-expected performance in the manufacturing sector, according to a Reuters poll of economists.
That compares with a 0.2 per cent rise in gross domestic product (GDP) in the Government's advance estimates.
Singapore's central bank expects economic growth to exceed the upper end of the official 4 per cent to 6 per cent forecast range, recovering from the recession induced by the Covid-19 pandemic last year, its worst on record.
"The significant upgrade takes into account the March industrial production performance... and we think there is more upside from trade-related service sectors," said macro strategist Alex Loo at TD Securities.
This year's GDP growth will continue to be driven by the manufacturing and trade-related service sectors, he added.
The city-state is often seen as a bellwether for global growth as international trade dwarfs its domestic economy.
Industrial production last month is forecast by economists to expand 3.4 per cent year on year, the sixth straight month of increase and following a better-than-expected 7.6 per cent rise in March.
The latest data is due today.
The central bank is widely expected to maintain its accommodative stance when it meets for the second of its semi-annual policy announcements in October.
"We are hopeful of recovery in the global demand continuing to support the export-led recovery in Singapore's economy over the rest of the year," said Mr Prakash Sakpal, ING's senior economist for Asia.
However, the economy faces uncertainties due to the global and local coronavirus outbreak situation.
Singapore this month reimposed some restrictions on social gatherings, the toughest since exiting a lockdown last year, to combat a recent spike in local Covid-19 infections.
Economists said further curbs will add to weakness in the service, tourism and construction sectors.
REUTERS
