Singapore: GDP points to a 6.0% contraction in 2020 – UOB

Barnabas Gan, Economist at UOB Group, reviewed the GDP prospects for Singapore for the current year.

Key Quotes

“In the latest MAS Survey of Professional Forecasters, respondents shaded their median GDP outlook for 2020 lower to -6.0%, from -5.8%.”

“Our outlook for Singapore’s GDP was recently downgraded to 5.0% for 2020. The downgrade was done in view of the protracted COVID-19 situation worldwide and the persistent downturn in Singapore’s construction and services sectors.”

“A brighter outlook can be expected in 2021. The survey respondents highlighted a robust 5.5% GDP growth in 2021, up from a projected contraction of 6.0% in 2020. In a nutshell, we highlight three factors that could contribute to a gradual recovery of Singapore’s economic performance into 2021. These include (1) the improvement in the COVID-19 situation in Singapore especially with the prospect of a vaccine by then, (2) the potential reintroduction of tourism-led demand especially given the reopening of the attractions since 1 July 2020, and (3) the support from the biomedical industry in the midst of stronger pharmaceutical-related demand globally.”