Biden's US$1.9t stimulus bill a major catalyst for Singapore's recovery

Market watchers say rescue package could boost local exports and lift cyclical stocks; but there are risks, too, as inflation expectations rise

Published Fri, Mar 12, 2021 · 05:50 AM

Singapore economy

Singapore

US President Joe Biden's US$1.9 trillion stimulus bill, due to be signed on Friday, could boost local exports and lift cyclical stocks, market watchers said.

Singapore, with an externally oriented economy and an equity market heavily weighted with cyclical counters such as banks and property developers, could be a major beneficiary of one of the largest economic rescue packages in US history. But there are risks, too, as inflation expectations rise.

CIMB Private Banking economist Song Seng Wun said there will be upside to Singapore's growth estimates for 2021 and 2022, reflecting the lift from the stimulus as well as expectations of a vaccine-powered strengthening of activity.

"Upside to global economic growth means upside to global trade volume which will be very supportive of Singapore GDP growth as well as companies' earnings growth in the coming months and year," h…