Upward GDP revision on the cards on back of stronger IP index

GDP growth might register at 3%.

Singapore’s fourth quarter GDP figure is slated for an upward revision following the better-than-expected December production index.

The Ministry of Trade and Industry (MTI) had forecasted December IP production to register at -3% year-on-year, but the final headline figure was recorded at a marginally higher -1.9%.

“With the better than expected IP figures, and possibly upward revision in the service growth number, expect the headline GDP growth to be lifted marginally upwards. Full year GDP growth for 2014 may well come in just a tad higher at 3%, in line with our long held forecast, versus the official advance estimate of 2.8%,” stated DBS.

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