Singapore: Economy forecast to expand 5% in 2021 – UOB

UOB Group’s Economist Barnabas Gan comments on the latest GDP data in Singapore.

Key Quotes

“Based on the final print by the Ministry of Trade and Industry (MTI), Singapore’s 4Q20 GDP contracted 2.4% y/y, improving from 3Q20’s pace of -3.8% y/y. On a q/q seasonally adjusted basis, the economy expanded 3.8%, extending the +9.0% q/q sa growth in 3Q20.”

“Overall, growth was underpinned by output expansions in the electronics, biomedical manufacturing, precision engineering and chemicals clusters.”

“Singapore’s growth outlook for 2021 will depend on several factors, including (1) how COVID-19 pandemic evolves, (2) geopolitical environment, and (3) global trade dynamics.”

“On the back of an expected pickup in external demand, coupled with Singapore’s relatively well-controlled COVID-19 situation, we keep to our call for Singapore to expand by 5.0% in 2021, against MTI’s outlook of between +4.0% and +6.0%.”