Singapore: Multiple Catalysts; Upside Surprise to 2022 Growth Likely
232 Views, 13 Jan 2022 21:48
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- The economy is primed for robust growth this year on buoyant global demand, “catch-up” growth in pandemic-impacted sectors, strong household balance sheets, and further upside in the private investment recovery.
- Consensus growth forecasts for 2022, currently tracking at 4%, are probably too conservative given this sanguine outlook.
- We forecast GDP growth at 5.0-5.5%; the output gap will turn positive earlier than policymakers envisaged (~mid-2022). Inflation will remain firm, compelling MAS to tighten policy aggressively in April, October.