Spore Economy

Spore Economy: 1Q GDP +8.5% yoy, vs +5.7% forecast by analysts and +12% in 4Q.
Growth was led by the manufacturing sector which grew 13.9% yoy. This strong growth was driven by the electronics and precision engineering clusters, which benefitted from a pick-up in business investment in the region…

Meanwhile, the construction sector grew 2.6% yoy, reversing the contraction of 2% in the previous quarter.
And the services producing industries also expanded 7.2%, following the growth of 8.8 per cent in the preceding quarter.
Growth was also driven by the financial services sector, which saw an increase in commercial bank lending activities…

OCBC says better-than-expected 1Q GDP expansion suggests resilience in the economy, expects upside to growth and inflation in the coming months, as Singapore has so far weathered the shocks from Japan and Middle East well. Adds, inflation may peak in 1H11, with the MAS tightening to temper inflation by 2H11.
Notes biggest risk is in oil prices, and rosy data not yet reflecting full impact from external shocks.