ECONOMY | Staff Reporter, Singapore

Will services sector continue to save the economy in 2016?

All other indicators paint bleak picture.

According to HSBC Global Research, advance estimates suggest Singapore economy ended 2015 on a high note: GDP expanded 5.7% q-o-q saar in 4Q, the fastest pace in 2 years. Similar to what we saw last quarter, the upside surprise can be attributed to a substantial pick-up in the services sector. The estimate shines light on the continuing decoupling of Singapore's services sector with the bleak picture emanating from the
manufacturing sector, which has registered 3 consecutive quarters of declining qo-q output. Construction activity also contributed to growth thanks to increased government infrastructure outlays.
Today's reading suggests that the Singapore economy grew 2.1% in 2015. But, are we to see the momentum in 4Q being sustained in 2016?
Unfortunately, HSBC sees growth to slow as it expects more tempered growth for the services sector.

These 3 charts will show you:

Click Here to see slideshow

Will services sector continue to save the economy in 2016?

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