6 Jan 2016
SGD: Singapore’s 4Q15 GDP bounce - ING
FXStreet (Delhi) – Prakash Sakpal, Economist at ING, suggests that Singapore’s 4Q15 GDP bounce has set the bar for further MAS easing high.
Key Quotes
“The 5.7% QoQ SAAR bounce in GDP in 4Q15 was a big upside surprise (consensus 1.0%). Services remained the main growth driver, covering for persistent weak manufacturing (first figure). A turnaround in construction to a 7% QoQ SAAR growth from 4.9% contraction in 3Q stands out.
The 2.1% full-year GDP growth was at the low end of the 2-2.5% official target. The government targets 2016 growth at 1-3%, revised recently from 2-4%. We consider 1-3% the new normal for potential GDP growth. The strong 4Q15 performance sets the bar for further MAS easing high.”
Key Quotes
“The 5.7% QoQ SAAR bounce in GDP in 4Q15 was a big upside surprise (consensus 1.0%). Services remained the main growth driver, covering for persistent weak manufacturing (first figure). A turnaround in construction to a 7% QoQ SAAR growth from 4.9% contraction in 3Q stands out.
The 2.1% full-year GDP growth was at the low end of the 2-2.5% official target. The government targets 2016 growth at 1-3%, revised recently from 2-4%. We consider 1-3% the new normal for potential GDP growth. The strong 4Q15 performance sets the bar for further MAS easing high.”