ECONOMY | Staff Reporter, Singapore

Export recovery to boost GDP growth above 3%

Electronics exports and re-export trade appear to be strengthening.

This year might see stellar exports driving Singapore's gross domestic product (GDP) growth above 3%.

Analysts at Maybank Kim Eng said exports and trade continue to drive the growth recovery, with early signs that the momentum is holding up well in the third quarter.

Lead analyst Chua Hak Bin said electronics exports and re-export trade appear to be strengthening, not waning.

Meanwhile, container throughput, which rose 12% in July, also suggests that wholesale trade services will likely grow more strongly in the third quarter.

More so, IE Singapore is more upbeat on the outlook, recently upgrading its NODX forecast to 6-7% for 2017.

"We expect NODX strength to continue in 3Q before moderating in Nov/Dec due to high base effects. With growth broadening to services, we see overall GDP growth swinging to above 3% in 3Q. Our full year GDP growth forecast is at 3.0% in 2017 and 2.4% in 2018," Chua said.

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