Singapore economy to recover in 2020

Bloomberg

Singapore’s economy expanded at a faster pace in the third quarter than earlier estimated, with the city-state projecting the recovery will take hold next year.
The final reading of gross domestic product showed the economy grew an annualised 2.1% in the third quarter from the previous three months, versus a previous projection of 0.6%, the Ministry of Trade & Industry (MTI) said in a report. The economy is set to expand 0.5%-2.5% next year, compared with 0.5%-1% this year, it said.
Compared with a year ago, GDP rose 0.5% in the third quarter, up from an initial estimate of 0.1%. The median forecast in a Bloomberg survey was for growth of 0.4%.
“Given the growth outlook for Singapore’s key final demand markets, and the projected recovery in the global electronics cycle in the year ahead, MTI expects growth in the Singapore economy to pick up modestly in 2020 as compared to 2019,” the ministry said.
With no clarity about whether US-China trade tensions will be resolved soon, Singapore’s trade-reliant economy is showing mixed signs, with the electronics industry experiencing a tentative rebound and exports still contracting.
In a separate report, Enterprise Singapore sees non-oil export growth of 0%-2% in 2020, compared with a contraction of 9.5% to 10% this year. “Prospects for 2020 tilt towards stabilisation,” said Selena Ling, an economist at Oversea-Chinese Banking Corp in Singapore (OCBC). OCBC sees growth of 1%-2% in 2020, with non-oil exports likely to recover “if there is no further escalation of US-China trade tensions in the form of fresh tariffs/hikes,” she said.