Singapore Economy

Economy: Singapore's 3Q12 GDP shrank more than previously estimated, down 5.9% qoq in seasonally adjusted, annualized terms, versus an earlier estimate of a 1.5% contraction, as the electronics sector sustained more damage from the faltering global economy. Yoy, the economy eked out only a 0.3% expansion in the quarter, compared with an earlier estimate of a 1.3% expansion. This has led the govt to cut its full-year growth estimate for 2012 to 1.5%, from an earlier estimate of a range from 1.5% to 2.5%. The govt expects Singapore's economic growth to remain subdued for the rest of 2012; the electronics manufacturing cluster would continue to be weighed down by tepid external demand; growth may be slightly lower than forecast, if the weakness in the externally-oriented sectors persists into 4Q12. Adds, 2013 growth will come in lower than expected if risks of U.S. fiscal situation, escalation of euro-zone debt crisis materialize. Forecasts 2013 GDP growth of 1%-3% as global economic outlook is clouded with uncertainties. Output in the manufacturing sector fell 0.8% yoy, compared with the previously estimated 0.7% rise. Construction grew 7.7%, versus an earlier estimated 8.6% rise. Separately, Spore’s exports bounced back in Oct driven by a rise in non-electronic exports including ship structures and electrical circuits. Exports of goods made in Singapore other than oil rose 7.9% yoy in Oct, after falling a revised 3.6% in Sep. Consensus estimates were for a 3.6% rise. Mom, exports fell 1.2% in seasonally adjusted terms, after expanding 1.3% on month in Sep. This compares with the median estimate of 0.9% contraction in Oct. Shipments to the EU, the biggest export destination, rose 8.9% yoy, compared with a 15.7% yoy fall in the previous month. Exports to the U.S. surged 48.0% on year after falling 7.2% in Sep. Exports to China grew 6.7% after the previous month's 1.5% increase. Electronics exports declined 0.8% on year, after falling 16.6% in Sep, while non-electronics shipments grew 12.7%, compared with a 3.9% rise last month. In the non-electronics sector, pharmaceutical exports rose 2.7%, after falling 3.0% in the previous month.