
USD weakness keeps Singapore GDP growth conservative
The whole external environment remains dicey.
Recovery in the US economy has been sluggish, while outlooks for Singapore’s key trading partners - China, Eurozone and Japan - are expected to remain unpredictable.
According to analysts at DBS, nothing in the external environment suggests an improvement in growth momentum in the near-term.
Singapore’s GDP rose 1.1% in 1Q15, versus expectations of a 0.2% increase. Nicholas Teo of CMC Markets says that the immediate reaction to this surprise was most evident in the USD/SGD weakening to 1.363 from 1.373.
DBS adds that the overall GDP growth forecast for 2015 remains at 3.2% but downside risks are up ahead.