Singapore: Positive prospects for Industrial Production – UOB

Economist at UOB Group Barnabas Gan reviews the prospects for the Industrial Production in Singapore for the current year.

Key Quotes

“Singapore’s industrial production surprised market estimates with a 7.6% y/y surge in March 2021.”

“On the back of a surge in global demand for semiconductor chips, Singapore’s electronic output expanded 33.7% in March 2021, the fastest growth in three months.”

“The output of chemicals rose 9.5% y/y in March 2021, marking its fastest pace of growth in three months.”

“The higher-than-expected growth in March’s industrial production will likely lift Singapore’s GDP growth in the first quarter of 2021.”

“All-in-all, we keep our industrial production growth outlook of 5.5% in 2021. The risk to our outlook appears to be balanced; upside risks to our outlook will include a quickerthan-expected rollout of the COVID-19 vaccine, resulting in an accelerated recovery back to pre-COVID-19 levels. On the other hand, uncertainties surrounding COVID-19 given the introduction of new virulent variants in other parts of the world, coupled with brewing geopolitical tensions, may inject downside risks to our outlook should these factors be exacerbated.”