Overall GDP growth in for an upgrade after surprise manufacturing uptick

The contraction was smaller than expected.

Singapore’s overall GDP growth figure may be upgraded to reflect the softer-than-expected contraction in the manufacturing sector in the first quarter.

Analysts note that the upside surprise in last weeks industrial production (IP) figure will push overall manufacturing growth in the quarter to -2.5%, up from the advance projection of -3.4%.

“This upward adjustment will likely contribute to an addition 0.2%-pt increase in overall GDP growth. The official preliminary GDP estimate currently stands at 2.1% for Q1,” stated DBS.

However, Bank of America Merrill Lynch noted that the better manufacturing reading might be offset by a slight downward revision in flash estimates of services growth for the first quarter.

“The government may upgrade 1Q GDP growth to +2.2% year-on-year. We however expect a small downward revision in flash estimates of 1Q services growth to partly offset the better manufacturing reading. Overall 1Q GDP growth is within MTI’s full year forecast of 2% - 4%. Our GDP forecast stands at +2.5% for 2015 and +2.8% for 2016,” stated BofAML.

Also Read

Singapore ranks second in global economic freedom

Economists forecast modest NODX growth for Singapore in 2024

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit