This is how Singapore dodged technical recession in 4Q12

Services sector rallied the economy as manufacturing crumbled.

BBVA reports that the Singapore economy grew by +1.8% q/q saar in the fourth quarter of 2012, (consensus: +1.6%) after a revised -6.3% q/q saar contraction the previous quarter, avoiding a technical recession and bringing full-year growth to 1.2% from 4.9% in 2011.

"A rebound in the services sector more than offset a decline in manufacturing, which contracted at a faster pace than the previous quarter. The positive outturn in the last quarter comes despite the Monetary Authority of Singapore refraining from easing policy in its meeting in October. Singapore's PM recently reiterated the government's forecast of 1-3% growth in 2013," added BBVA.

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