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Economists at Standard Chartered Bank raise Singaporean 2020 GDP forecast to reflect potentially higher operating level during the ‘circuit-breaker’ period while Q2 growth may be the worst of 2020. USD/SGD is trading at 1.4167, near daily lows.

Key quotes

“Final Q1-2020 GDP was revised higher to -0.7% from the advance print of -2.2%. The upward revision was driven primarily by a firmer-than-expected manufacturing sector, boosted by robust pharmaceuticals production.” 

“We raise our 2020 GDP forecast to -6.0% from -9.6%. We also lower our 2021 GDP growth forecast to 8.2% from 10.8% due to a higher base.” 

“We expect Q2 to be the worst quarter of 2020 for Singapore’s economy given the gradual lifting of local circuit-breaker measures in June, and of lockdowns in other countries in May-June. However, the H2 recovery is likely to be tepid.”