Analysts forecast higher GDP following surprising industrial production results | Singapore Business Review

Analysts forecast higher GDP following surprising industrial production results

The 7.6% surge of industrial production in March broke past analyst estimates.

Manufacturing output increased for the fifth straight month by 7.6% year-on-year in March, smashing analysts' expectations. Excluding biomedical manufacturing, output grew by 14.9%.

Electronics output hit a three month high at 33.7% growth in March, while the chemicals sector grew by 9.5%. Transport engineering, biomedicals, and general manufacturing lagged behind.

OCBC Treasury Research revised their GDP estimates upwards from 0.2% for the full year, to at least 0.8%.

"Looking ahead, given the low base a year ago with the start of the Circuit Breaker period and global lockdowns, the manufacturing outperformance is likely to sustain in the double-digit growth handle, partly due to base effects but also due to the green shoots recovery in the global economy, particularly for the major economies of the US and China," said Selena Ling, Head of Research and Strategy for OCBC Treasury Research.

UOB Global Economics & Markets Research had a higher GDP estimate at 0.9%.

"Given that industrial production rose by a faster-than-expected rate of 10.7% y/y in the first three months of 2021, Singapore’s GDP should expand by 0.9% y/y(+2.7% q/q sa)in 1Q21, up from Ministry of Trade & Industry’s advance estimates at 0.2% y/y (+2.0% q/q sa), assuming no major revisions to the services and construction sectors," said UOB Economist Barnabas Gan.

Moody's Analytics said Singapore's near-term prospects continue to be favorable given the government's ability to contain localized COVID-19 outbreaks and the ongoing vaccination rollout.

Get Singapore Business Review in your inbox
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

All of its key businesses were profitable in the first six months of the year.
Singtel, Keppel Corp, and OCBC Bank led the Straits Times Index on 29 July.
There seems to be a trend amongst workers looking to switch employers.
Total property income decreased by 4% but was offset by the decline in expenses. 
This is under the Special Situation Fund for Startups investment scheme. 
Called Project Nexus, the blueprint outlines how countries can integrate their retail payment systems onto a single cross-border network.
It plans to expand in the coming months, on the back of China’s economic recovery.
Funds will be used to modernise its portfolio.
Local financial firms are expected to remain resilient even should the economy slip into a recession again.
The Mapletree group of companies led the index on 28 July.