ECONOMY | Staff Reporter, Singapore

2 things that can back the 2.2% GDP growth forecast

Expect higher manufacturing output.

Whilst the advanced estimates pointed to a 1.9% QoQ decline in GDP growth for the first quarter of the year, there are reasons to be optimistic for Singapore's economy.

According to RHB, Singapore's GDP is to grow 2.2% this year, inching up from the 2% expansion seen last year.

This will be supported by higher manufacturing output, underpinned by robust semiconductor, chemicals, and capital goods demand.

More so, the growth would likely be due to an increased growth for export-facing service providers including wholesale trade, logistics and finance. IT and communications could potentially drive growth as well.

However, despite these, construction work is set to remain muted, as businesses are still facing structural headwinds, leading to deterred investments.

"In addition, the property market would need to digest an oversupply of residential and commercial properties coming online this year," RHB said. 

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