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Global Economic Outlook
Singapore Outlook Update: The Little Engine That Could
By Michael Manetta
A sharp upswing in March biomedical production led to a surprising expansion in Q1, with ex-biomedical manufacturing also growing impressively. The latter, in particular, faces a mixed global environment: G3 demand for electronics will continue to moderate in 2011 due to high inventories and some consumer fatigue, but capital goods exports—particularly to greater China—should hold up through the year. As a major producer of oil rigs and drilling equipment, Singapore may see some upside surprise in demand as oil prices encourage new investment in that sector. Japanese reconstruction in H2 may also benefit Singapore’s producers, though we expect the impact to be limited given their trade history.