In view of analysts at TD Securities, Singapore’s GDP was much worse than expected, falling -3.4% q/q in Q2 (market 0.5%) following 3.8% q/q growth in the previous quarter.
“Growth is barely in positive territory on a y/y basis at 0.1% (market 1.1%) compared to a downwardly revised 1.1% in Q1. The worsening GDP reflects the sharp decline in manufacturing activity as reflected in PMIs, production and exports data.”
“Manufacturing fell at an annualised pace of -6% q/q, construction declined -7.6% q/q and services fell -1.5% q/q. It is highly likely that the government revises lower its 1.5-2.5% growth forecast while the data sets the scene for an easing of policy by MAS in October.”
The value of Singapore's dollar fell after the latest report on GDP, which showed Singapore's economy was unexpectedly down. The first estimate of second quarter GDP showed a 3.4% decline versus a +0.5% increase in forecast and +3.8% in the first quarter