Analysts trim Q2 growth expectations ahead of GDP release

It will be markedly lower than Q1.

Singapore’s Q2 GDP is expected to be quite uninspiring on back of weak manufacturing performance and record-tightness in the labour market.

UOB expects Q2 GDP to grow only 1.8% year-on-year as opposed to the 2.6% year-on-year achieved in Q1 on back of the weak manufacturing performance over April and May.

“As such, strength will continue to come from the service sectors, a combined share of 67% of GDP, as we predict a growth of 3.0% y/y although this is lower than 1Q’s 3.8% y/y),” UOB said.

Meanwhile, BMI research expects Q2 GDP growth to come in at 2.5% year-on-year as the labour crunch continues to subdue economic growth.

“That said, Singapore's strong business environment, rock-solid fiscal position, and openness towards talented immigrants will continue to make the economy a top performer among its Developed Market peers over the long-term,” BMI Research said.

The Ministry of Trade and Industry will release the advance estimates of Singapore’s 2Q 2015 GDP anytime between 7 and 14 July.