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 annualized 2.1% in the third quarter from the previous three months, versus a previous projection of 0.6%, the Ministry of Trade & Industry said in a report Thursday. 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 U.S.-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 Thursday, 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 toward stabilization,” said Selena Ling, an economist at Oversea-Chinese Banking Corp in Singapore. OCBC sees growth of 1%-2% in 2020, with non-oil exports likely to recover “if there is no further escalation of U.S.-China trade tensions in the form of fresh tariffs/hikes,” she said.

Singapore’s currency was little changed at 1.3626 per dollar in early Asian trading Thursday.

The central bank, which eased monetary policy for the first time since 2016, said last month it expects a turnaround in the economy toward year’s end, with a modest improvement next year alongside stable global prospects.

Edward Robinson, chief economist of the Monetary Authority of Singapore, told reporters Thursday that policy is “assessed to remain appropriate at this point in time” and the “policy stance then will depend on how the economy evolves.”

The MTI said there were “signs of stabilization in the global economy even though global growth remains weak.” World growth is projected to see a “modest pickup” in 2020 led by emerging markets, while growth in Singapore’s main markets of the U.S. and China will likely ease, it said.

Manufacturing rebounded from a recession to grow an annualized 7.6% in the third quarter from the previous three months. Services rose 0.4%, while construction contracted 0.1%.

With a rebound in the economy expected in 2020, how will Singapore property prices be heading? Developers are already beginning to adjust prices up for many of the new developments. Sengkang Grand Residences being one of the latest projects launched this year has been seeing swift sales since launch in November this year. Check out the Sengkang Grand Residences Balance Units Chart for the latest units available.

If you have not visited the Sengkang Grand Residences Showflat yet, you can book an appointment here.

 

 

Edited from Source: Bloomberg News

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