Singapore’s 5.9% Q4 GDP a sign of optimism for 2022: UOB
Maybank and OCBC also echoed this outlook for the upcoming year.
UOB called last year’s Singapore fourth quarter (Q4) gross domestic product (GDP) of 5.9% a strong end to 2021.
Going forward, UOB maintains a positive outlook into 2022, as the manufacturing sector is expected to lead the growth for the year. This is due to the demand for semiconductors and their related products, as well as the country’s electronics and precision engineering clusters.
Tourism-related clusters, which include retail, transport, and hospitality, are also predicted to experience further recovery as economies begin to reopen their borders on the back of higher vaccination rates.
Maybank’s report also reiterated this, with their research expecting an upgrade on the end of the services and construction sectors. The group also expects the momentum from the manufacturing sector to moderate from last year’s high base.
OCBC, meanwhile, points to external factors such as the global monetary policy tightening led by the FOMC, China’s growth slowdown, and COVID variants as reasons for a slowdown. A faster pace of FOMC tightening could result in heightened market volatility, whilst COVID variants could affect the re-opening of regional borders and economies.
UOB also announced a GDP growth outlook for the country at 3.5%, whilst Maybank posted a higher prediction at 3.8%. OCBC had a range of 3% to 5% for the year, as well.