Singapore upwardly revised its third-quarter gross domestic product growth on Thursday, pointing towards some signs of stabilisation in the volatile island city-state’s economy.

Singapore’s economy - together with most other Asian economies - has been suffering due to ongoing trade tensions between China and the United States.

The upbeat move for the Asian nation also triggered the government to intensify its 2019 growth outlook towards the top of its previous projection, while the 2020 forecast indicated a more moderate improvement with exports seen retracting previous declines. 

“It’s a sign that conditions are not too pessimistic and that there are still some sectors which are still getting modest growth,” said Continuum Economics economist, Jeff Ng. 

“We expect some stabilisation in growth momentum ahead although it will be still below trend,” he added. 

Year-on-year, GDP was up 0.5%, as per figures from the ministry of trade and industry, accelerating from the previous 0.1% growth rate expected in the government’s advance estimate and in line with the 0.5% forecast by economists in a Reuters poll. It also arrived slightly above a revised 0.2% growth recorded in the previous three-month period. 

During the three months to September, economic growth surged by 2.1% from the previous quarter and on annually and seasonally adjusted terms. This contrasts to the government’s original forecast of a 0.6% increase and matching an average estimate of 2.1% in a Reuters poll. It also erased a 2.7% drop in Q2. 

Singapore’s government revised its official growth outlook range for this year to 0.5%-1.0% from a previous 0.0%-1.0%. The economy is forecast to expand 0.5%-2.5% next year, as the country’s electronics sector rebounds strongly. 

In October, Singapore’s central bank loosened its monetary policy for the first time in three years, in a bid to boost waning economic growth. Following the release of Thursday’s data, chief economist at the Monetary Authority of Singapore Edward Robinson said that the policy stance remained relevant. 

Maybank Kim Eng economist Lee Ju Ye Lee said: “Our base case is that (the central bank) will hold monetary policy in 2020. We are not looking at further easing now that growth is starting to pick up.”

 

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