Singapore slowdown, Thailand’s weak recovery

GDP growth in Singapore slowed sharply in the first quarter of the year, and the outlook for the rest of 2024 is very poor, with a weakening labour market, tighter fiscal policy and subdued global demand all set to weigh on activity.

Meanwhile, although growth in Thailand picked up last quarter, the economy remains very weak, with GDP less than 2% bigger than it was on the eve of the COVID-19 pandemic. We think the weak economy will prompt the central bank to cut interest rates at its June meeting.