Chart of the Day: GDP growth vs. general business expectations

Pessimism lingers among manufacturers despite GDP showing strength.

According to MayBank, Singapore’s GDP growth has been lagging the general business expectations for the manufacturing index.

The index has been negative for two quarters now (-10 in 3Q11 and -11 in 4Q11), portending slower growth ahead. The official GDP growth forecast for 2012 is currently 1-3%, and the primary risk at

this stage is of economic growth undershooting expectations.

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