Singapore: Domestic demand could improve in H2 2021 – UOB

Economist at UOB Group Barnabas Gan reviews the recently published Retail Sales data in Singapore.

Key Quotes

“Singapore retail sales fell 6.1% y/y (-1.8% m/m sa) in January 2021, marking 24 straight months of contraction.”

“Retail sales may continue to stay subdued at least into 1H21, given the absence of tourism-led demand. The resurgence of COVID-19 cases globally, coupled with the new contagious strains seen to-date, may mean that international travel could stay weak for a prolonged period… However, we think that the improving domestic demand seen todate, should it be sustained, could be sufficient allow a rebound in 2H21. Barring an unexpected exacerbation of COVID-19 infections in Singapore, we remain cautiously optimistic for retail sales to recover to +1.0% in 2021.”