UOB Group’s Economist Barnabas Gan reviews the latest data from Singapore.

Key Takeaways

“Singapore’s industrial production expanded 15.6% y/y (+4.3% m/m sa) in Dec 2021, surprising market estimates for a milder growth of 12.0% y/y (+0.9% m/m sa). Excluding biomedical manufacturing, industrial production rose 5.0% y/y. Accounting for the latest data, Singapore’s industrial production grew 13.2% for the whole of 2021.”

“Given the strong manufacturing showing in 4Q21, Singapore’s 4Q21 and 2021 GDP growth may likely be revised higher. Full-year GDP growth is expected to be upgraded to 7.3% (from MTI’s advance estimates of 7.2%) in 2021, while 4Q21 GDP growth may be adjusted upwards to 6.2% y/y (from 5.9% y/y).”

“Into 2022, we keep to our view that Singapore manufacturing prognosis remains favourable especially given the strong numbers seen to-date. Our outlook is for full-year manufacturing to grow by an average of 4.0% in 2022. This suggests that despite the high-base growth rate seen in 2021, global trade activity is expected to stay buoyant in the new year.”