Why an upside surpise is on the cards for Singapore economy

The market has got it all wrong.

An upside surprise is expected in 1Q14 advance GDP estimates due next Monday. The market is expecting a marginally slower pace of expansion in the economy, at 5.4% YoY, down a tad from 5.5% in the previous quarter.

On a sequential basis, growth impetus is expected to slow markedly to a mere 0.6% QoQ saar, from 6.1% in 4Q13. However, DBS believes the market will be in for a pleasant surprise.

Here's more:

We expect the headline GDP growth to report an expansion of 5.8% YoY, which implies a still healthy clip of 2.5% QoQ saar.

Essentially, while growth momentum within the manufacturing sector will likely moderate, the services sector is expected to pick up the slack. Growth in the services sector will likely have accelerated on strong trading activity within the financial markets and pick-up in intra-regional trade.

The Monetary Authority of Singapore (MAS) will convene its policy review on the same day as well. The MAS is expected to continue its exchange rate policy stance of a gradual appreciation of the Sing NEER.

Possible spike up in inflation in the coming months on wage pressure as well as a fairly healthy pace of economic growth essentially call for a continued tightening bias in the monetary policy.

Also Read

Low inflation in Singapore unlikely to hold in 2Q24

Lower private transport costs ease inflation to 2.7% YoY in March

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit