Singapore to grow 2.3% in 2013 as activity indicators improve: BBVA

Latest industrial production readings brighten outlook.

According to BBVA, recent data for Singapore – whose growth momentum has been lagging its ASEAN neighbors – have been more encouraging when compared to the weaker reading in China.

Singapore released the country's final Q1 GDP which was revised up to +0.2% y/y compared to the preliminary reading of -0.6% y/y released in mid-April. On a sequential basis, GDP increased by 1.8% q/q saar from +3.3% in Q4 2012. At the same time, headline inflation eased to 1.5% y/y in April (consensus: 3.0%) from 3.5% in March.

Meanwhile, growth of industrial production in April surprised to the upside at 4.7% y/y (consensus: 1.6%) from a revised -3.8% y/y in March, driven by the biomedical manufacturing sector.

"Looking ahead, given the positive signs from the latest industrial production readings, Singapore’s growth momentum is expected to improve amid stabilized external demand in the remainder of 2013. We expect growth to reach 2.3%, compared to the government’s outlook of 1% to 3%," said BBVA.