UOB Group’s Barnabas Gan comments on the GDP figures in Singapore.

Key Takeaways

“Singapore has revised its 1Q22 GDP growth higher to 3.7% y/y, from the preliminary estimate of 3.4% y/y released in Apr. From a quarter-on-quarter perspective, 1Q22 GDP rose 0.7% as compared to the advance estimates for an expansion of 0.4%. The upward revision is in line with our call for GDP to grow at 3.6% y/y (+0.6% q/q sa).”

“The official estimate for Singapore’s full-year growth has been maintained at 3 – 5% in 2022. However, authorities are now expecting GDP growth ‘likely to come in at the lower half of the forecast range.’ This is also in line with our expectations for full-year GDP to average 3.5% this year.”

“Singapore’s overall economic prognosis remains optimistic on the back of trade and manufacturing momentum. However, exogenous factors including rising inflation, China’s slowdown and the monetary policy tightening in advanced economies could weaken Singapore’s economic outlook in the year ahead.”