0613 GMT - UOB economists upgrade their forecast for Singapore's 2024 real GDP growth to 3.3% from 2.9%, following a strong 3Q GDP print. This compares with the official forecast of 2.0%-3.0%. Core inflation is easing, and price pressures becoming less broad-based, says economist Jester Koh. With the output gap expected to close in 2H, alongside stronger economic activity, demand-side inflation risks persist. Koh thinks MAS may proceed cautiously with policy normalization as the central bank monitors core inflation, aiming to keep it close to about 1.8%, while waiting for the GST hike effects to fade. "Our base case now calls for a 'slight' reduction (by 50bps) to the S$NEER slope either in Jan or Apr 2025." UOB cuts its 2025 GDP growth forecast to 2.9% from 3.2%. (fabiana.negrinochoa@wsj.com)
(END) Dow Jones Newswires
October 14, 2024 02:14 ET (06:14 GMT)
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