DBS bullish on Singapore Q3 GDP growth

The bank raised its forecast to 5.1% YoY.

DBS said Singapore's GDP is poised to go up.

It said in a sector report that GDP growth could hit 5.1% YoY and 8.5% QoQ, up its advanced estimates of 4.6% YoY and 6.3%.

Moreover, DBS expects the economy to expand 3.2% in 2017.

DBS senior economist Irvin Seah said, "The upward revision stems from an anticipated stronger showing in the third quarter, better quality of growth underscored by the broadening-out in growth impetus across the economy, and expectation of continued strengthening in the global outlook in the coming quarters."

Singapore's industrial output jumped 18.5% in Q3. Additionally, higher-frequency services data are heading higher. Re-exports and container throughput rose further in Q3, reflecting improvements in trade-related services.

Equity market turnover has risen whilst loan growth climbed up as well. This means there is a pick-up in financial activities.

"All these hint at a possible upward revision to the services growth figure," Seah said.