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Investing.com - Bank of America has upgraded its 2025 Singapore GDP growth forecast to 2.9% from 2.3% previously, citing stronger manufacturing performance and tourism activity.
The bank expects third-quarter GDP to expand 0.7% quarter-on-quarter on a seasonally adjusted basis, translating to 2% year-on-year growth. Manufacturing GDP is projected to grow sequentially in the third quarter, assuming activity levels maintain their July momentum through August and September.
Accommodation and food and beverage sectors are also anticipated to contribute positively to third-quarter growth, supported by encouraging tourism indicators and the one-off "SG60" vouchers for residents worth S$2.02 billion (0.3% of full-year GDP) distributed from July.
For the fourth quarter, Bank of America forecasts a sequential pullback of 0.5% as transshipment momentum fades more significantly. The bank maintains its 2026 GDP forecast at a below-trend 2%, assuming quarterly growth averages 0.6-0.7% throughout the year.
The upgraded outlook suggests Singapore’s economic performance could exceed the current official forecast range of 1.5-2.5%, which the bank expects the Monetary Authority of Singapore may signal in its October Monetary Policy Statement.
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