Upgraded trade forecasts can't lift GDP outlook, as services drag on virus measures

MOMENTUM in Singapore's trade sector, which did better than expected in the first three months, is tipped to continue for the rest of the year on the back of demand for semiconductors.

But Tuesday's upgrade to the official export forecast did not boost the broader economic outlook. The boom in electronics manufacturing and shipments will likely be offset by Covid-19's drag on the services sector.

Non-oil domestic exports (NODX) are projected to grow by 1 per cent to 3 per cent year on year in 2021, said trade agency Enterprise Singapore (ESG). The latest range is up from the forecast of zero to 2 per cent expansion projected in February.