Singapore economy will feel pressure for months to come: BBVA

Singapore will still be vulnerable as September's disappointing IP may well persist.

Singapore's industrial production for September fell by -2.5% y/y (consensus: 1.8% y/y) on weakness in electronics and pharmaceuticals production, which according to BBVA is indicative of Singapore's vulnerability to the ongoing global weakness.

"The outturn, though notoriously volatile, follows a disappointing September exports outturn (3.4% y/y), and highlights the ongoing stress in Singapore’s economy due to the global slowdown. We expect the economy to remain under pressure in the coming months, though domestic demand, driven by a tight labor market (unemployment is low at 2.0%), may partially offset the weak external outlook," BBVA said.