Singapore: Contraction in economic activity is a given – ANZ

We will get the first official data showing the extent of the COVID-19 economic impact on Q1 growth when Singapore releases its advance  GDP estimates tomorrow at 00:00 GMT, analysts at ANZ Research inform.

Key quotes

“A contraction in economic activity in both quarter-on-quarter and year on-year terms is a given. The question is the extent of the decline. We forecast -4.4% q/q SAAR and -0.6% y/y.”

“The Q1 data will only be partial, and subject to further large revisions. The full impact of the COVID-19 outbreak will be seen in the Q2 data.”

“We expect the Monetary Authority of Singapore (MAS) to ease policy aggressively at their meeting on Monday, 30 March, by shifting to a neutral policy stance and re-centering the policy band to the prevailing S$NEER level.”