Singapore's growth momentum feared to 'fall back to reality' beyond 2Q13

Flattish growh trajectory looms.

According to DBS, the construction sector experienced a slight moderation in growth pace to 5.1%, down from 5.8% in 1Q13.

Though the pipeline of public transportation projects should provide enough growth impetus to the sector, the slowdown in property transaction volume is likely to have impacted growth momentum. More easing in growth prospect is expected for this sector in the coming quarters.

Here's more from DBS:

Going forward, the recovery in the US will be tepid and the Eurozone remains stuck in recession. China is aiming for slower growth and with that, the strong showing in the second quarter is probably best viewed as a technical rebound from the slump in the previous quarter.

Beyond 2Q13, growth momentum is likely to fall back to reality. A more flattish growth trajectory should be more in line with the normalisation process in the global economy. Our full year GDP growth forecast of 2.5% remains on track although there is increasingly more upside risk to that. The resilience of growth fundamentals in Asia could well spring such surprises.

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