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Singapore banks on unlikely electronics growth as pharma manufacturing declines

It’s expected to contract by 0.2% in 4Q.

The city-state’s bleak manufacturing could possibly register flat growth for the year if electronics sustains its growth in the following month.

According to a report by OCBC, this is a less adverse scenario from an expected 0.6% drop in growth.

"This would shade our 3Q16 GDP growth forecast to 2.0% yoy (+0.8% qoq saar), versus 1.8% yoy previously, and in turn our full-year 2016 GDP growth forecast a tad higher to 1.9% yoy (1.8% previously),” the report noted.

Meanwhile, there is considerable risk that the industrial production performance could still slide back into negative territory for the coming months.

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“Moreover, the economic horizon remains clouded by external headwinds like the business concerns about the US presidential elections (with polls suggesting a tight race between Clinton and Trump) and the ongoing domestic economic restructuring efforts,” the report noted.



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