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Export Slowdown Negative Signal For GDP

SGD

ING lowering Singapore GDP forecast after export slowdown: "April data signals a weak start to the economy in 2Q21. The export slowdown may be transitory and low base effects will still help a strong bounce in GDP of double-digits in the current quarter. However, the recent tightening of Covid-19 restrictions effective yesterday (16 May) for a month will also weigh on domestic spending. We will look to scale back our 14.2% YoY 2Q GDP forecast on more signs of economic weakness in forthcoming activity data. We believe fiscal policy will remain in the forefront to soften the Covid-19 impact on the economy, while the Monetary Authority of Singapore will hold on to its neutral policy stance ahead."

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