SG Economy

Economy: 4Q15 GDP growth tops expectations; downside risks remain
Based on advanced estimates, the Singapore economy grew 2% y/y in 4Q15 beating estimates for a 1.2% increase as well as 3Q15’s 1.8% growth.

The services (+3.2%) and construction (+2.2%) industry helped to negate declines in the manufacturing (-6%) industry.

The manufacturing industry was primarily weighed down by a decline in the output of electronics, transport engineering, and precision engineering sectors.

Construction’s expansion was aided by public sector construction activities while the services industry was aided by growth in the wholesale & retail trade and finance & insurance sectors.

On a q/q basis, Singapore’s GDP grew 5.7% compared to forecasts for 1% expansion and 3Q15’s revised 1.7% growth.

For the whole of 2015, the Singapore’s GDP grew 2.1% y/y, in line with the government’s forecast of about 2% growth.

Back in Nov, the MTI projected that Singapore’s economy will grow 1-3% on the back of expansion in advanced economies and improvements in most emerging market and developing economies.

Downside risks continue to remain though, with the significant drop in demand in China should ongoing economic reforms falter.