UOB’s Senior Economist Alvin Liew reviews Singapore’s latest industrial production data and maintains the 2026 GDP growth forecast at 3.6%, with 2027 at 2.0%. The bank highlights broad-based weakness in February IP, despite continued AI-related support for electronics. It now judges that downside risks to Singapore’s growth outlook have increased, particularly via manufacturing and trade channels.
IP weakness clouds GDP outlook
“Singapore’s industrial production (IP) weakened more than expected in Feb and contracted by -7.2% m/m sa, translating to a -0.1% y/y decline, against Bloomberg consensus’ and our forecast of -0.8% m/m, +14.1% y/y.”
