Economists give positive adjustments to Singapore’s GDP predictions

This comes as a poll conducted by Reuters showed that the final gross domestic product in Singapore is expected to be higher than the government’s advance estimates.

Singapore’s economy in the third quarter of 2019 is projected to have expanded much more than initially expected and will probably stabilise in the coming quarters, aided by a recovery in manufacturing, reported Thomson Reuters.

A poll conducted by Reuters covering 13 economists showed that final gross domestic product (GDP) in Singapore is expected to have increased a seasonally adjusted and annualised 2.1% from the second quarter. This is higher than the 0.6% growth in the government’s advance estimates.

The economy saw a contraction of 2.7% in the quarter earlier.

“Final third-quarter GDP is expected to be materially upgraded. Manufacturing came in much stronger than expected in September and services growth likely picked up speed, particularly in finance, business and tourism-related services,” said Lee Ju Ye, Maybank Kim Eng economist.

Singapore has been negatively affected by the US-China trade war and a broader global slowdown.

From the previous year, economic growth is seen to be adjusted to 0.5%, higher than the 0.1% indicated in advance estimates and the quarter earlier.

The country’s growth will also probably stabilise in the fourth quarter and recover next year.

“The tension between the near-term stabilisation if not modest pick-up in trade and lacklustre global capex remains, limiting the upside to final demand,” said Sin Beng Ong, JP Morgan economist.

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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg