Analysts have raised their GDP growth forecast, following a better-than-expected performance in the first quarter of the year, during which the economy expanded by 1.3 percent, above estimates of 1.1 percent contraction.
Private sector economists have forecast Singapore's GDP to expand by 6.5 percent in the second quarter of the year, according to the June 2021 «Survey of Professional Forecasters» published by the Monetary Authority of Singapore. This is higher than the 5.8 percent forecast in the previous survey.
At the same time, the respondents expect the economy to grow by 15 percent year-on-year in Q2 2021. The April to June period in 2020 was Singapore's worst-ever quarter on record, with GDP falling 13.2 percent. Respondents also estimated that GDP will expand by 4 percent in 2022, up from 3.8 percent in the previous survey
The survey, which is published quarterly, gathered the views 24 economists and analysts who closely monitor the Singapore economy.
Corporate and Financial Indicators
Three-quarters of survey respondents said they expect corporate profits to increase year-on-year in Q2 2021, while the remainder expect a decline.
Three-quarters of respondents also expect private residential property prices to grow during the quarter, while the rest expect prices to remain stable. Finally, half of the respondents assess that SGD corporate bond spreads will remain stable in Q2, while 37.5 percent believe they will narrow and 12.5 percent expect an increase.
Reopening Economy
Singapore is coming out of a month of heightened Covid-19 related restrictions, which lasted from May 16 to June 13, on the back of a growing number of infections in the community.
Last week, the Singapore government said its immediate priority is reopening the local community and restarting the economy in a safe manner. To do this, it is ramping up its vaccination program and stepping up its testing and contact-tracing capabilities.
