Singapore Q3 GDP beats forecasts

Bloomberg’s Haslinda Amin reports on Singapore’s third-quarter GDP figures and the revised 2017 GDP forecast

Bloomberg’s Haslinda Amin reports on Singapore’s third-quarter GDP figures and the revised 2017 GDP forecast

Singapore's gross domestic product expanded a seasonally adjusted 8.8 percent on quarter in the third quarter of 2017, the Ministry of Trade and Industry said in Thursday final revision.

Export growth is set to taper off next year, with International Enterprise Singapore saying in a separate report on Thursday that expansion will probably be zero to 2 percent in 2018, compared with an estimated 6.5 percent to 7 percent for this year. The current neutral monetary policy stance thus "remains appropriate", said Jacqueline Loh, deputy managing director of the Monetary Authority of Singapore (MAS).

In line with this stronger economic and trade outlook, IE Singapore also announced an upgrade in its forecast for non-oil domestic exports (NODX) for 2017.

According to official estimates, MAS core inflation is expected to be around 1.5 per cent this year and average 1 to 2 per cent in 2018, while CPI-All Items inflation is projected to come in at around 0.5 per cent this year, and stay in the range of 0 to 1 per cent next year.

Headline inflation remained flat at 0.4 per cent on a year-on-year basis for the third consecutive month in October, as higher food and private road transport prices offset a steeper decline in housing costs and a smaller increase in utility prices.

The growth is buoyed by manufacturing, which surged nearly by 35% quarter-on-quarter in Q3, while the ministry expects expansion in the USA and some emerging markets to improve global growth next year. Year-on-year Q3 GDP growth hits 3.6% in real term, lower than Q2's 3.9%.

All manufacturing clusters expanded, with the exception of transport engineering, which continued to shrink on the back of sustained weakness in the marine and offshore engineering segment. Construction continued to suffer, contracting for a third quarter by 5.3 percent.

More news: Giants' Sterling Shepard misses practice, unlikely to play vs. Redskins
More news: Texas DPS trooper shot, killed in Freestone County
More news: Flynn's lawyers no longer sharing information with Trump's legal team

While making projection of 2018, MTI said, "Global growth is expected to pick up marginally in 2018 on the back of stronger growth in the United States and some emerging markets and developing economies".

Growth has been surprisingly strong across Southeast Asia, with third-quarter data from the Philippines and Malaysia last week and Thailand this week exceeding forecasts, providing a more upbeat tone to the region as the US Federal Reserve tightens monetary policy.

The manufacturing sector is likely to continue to expand and provide support to overall GDP growth.

Manufacturing has been this year's breakout star, but economists say it is about time for services, which make up two-thirds of the economy, to shine. "Our preliminary expectation is for 2018 full-year growth to come close to 4.0%", Carnell said.

"The synchronized global recovery has legs", said Chua Hak Bin, a Singapore-based senior economist with Maybank Kim Eng Research.

However, global downside risks remain, such as uncertainty about the USA administration's policies, lingering concerns over protectionist sentiments, as well as possible inflation pressures due to stronger oil prices.

"At least for next year, we are not terribly gung-ho about the strength of the economy and wages. It's a question of whether this 5 per cent growth really reflects what's on the ground, and right now, it doesn't feel that way".

Recommended News

  • Strange Streaks on Mars Are Sand, Not Water

    Strange Streaks on Mars Are Sand, Not Water

    But now, new research from scientists at the US Geological Survey suggests the markings were simply made by flowing sand and dust. RSL do still have some unusual features though, like their seasonal appearance and gradual growth, which we can't yet explain.
    Leon Goretzka becomes Arsenal top target

    Leon Goretzka becomes Arsenal top target

    Goretzka is regarded as one of the best young players in Germany and has been tracked by a host of big clubs across Europe. According to SportBild , Leon Goretzka has met with members of Barcelona to address his future transfer there.
    Liverpool make contact over the potential signing of World Cup victor

    Liverpool make contact over the potential signing of World Cup victor

    Liverpool were interested in signing him previous year , and are to rekindle that interest again in the next transfer window. The Gunners have been chasing the 24-year-old since he first broke onto the scene at Schalke.
  • Thanksgiving shoppers courageous  cold for holiday bargains

    Thanksgiving shoppers courageous cold for holiday bargains

    It's fun to go out and just be a part of the holiday spirit", Gamache said. "We are here for our guests", said McCarty. Jessica Barnier and her family come across the border from southwest Ontario for a two-day shopping frenzy each year.
    Facebook to alert users influenced by fake Russian accounts

    Facebook to alert users influenced by fake Russian accounts

    This is part of our ongoing effort to protect our platforms and the people who use them from bad actors who try to undermine our democracy.
    Drake 'Basically Ghosted' Bella Hadid and Are 'No Longer Talking'

    Drake 'Basically Ghosted' Bella Hadid and Are 'No Longer Talking'

    "Things ended over text when he basically ghosted her", the source tells Us of the rapper, who is now touring out of the country. Their relationship was confirmed when they made their red carpet debut together at the 2016 Grammys .
  • Mississippi State QB suffers gruesome leg injury in Egg Bowl

    Mississippi State QB suffers gruesome leg injury in Egg Bowl

    Fitzgerald, a 6-5 junior, was injured on a 3-yard-run on the Bulldogs' second possession of the game against Ole Miss . Mississippi State and Ole Miss play for the 114th time, the 90th time that the Golden Egg is up for grabs.
    Light your excitement with a Christmas tree lighting ceremony

    Light your excitement with a Christmas tree lighting ceremony

    Drink hot chocolate and snack on cookies and kettle corn as you wander through nearby shops, which will be open for the evening. Each year, Orem City decorates the City Center grounds with large Christmas trees and other holiday decorations.
    Puneesh has betrayed his friend Akash

    Puneesh has betrayed his friend Akash

    While Vikas Gupta 's team, who was also Arshi Khan's family during the task comprised of Shilpa Shinde and Puneesh Sharma . Akash looses his chance of becoming the captain once again as the housemates find a point to disqualify from this race.
  • Budget 2017 - Stamp Duty Land Tax

    Budget 2017 - Stamp Duty Land Tax "abolished" for first time buyers

    Many forecasters had hoped that the budget would reverse the 3% surcharge on second homes and buy-to-let properties, introduced in April 2016.
    Dallas Cowboys G Zack Martin out against Chargers

    Dallas Cowboys G Zack Martin out against Chargers

    Rivers completed a pass to running back Austin Ekeler, but Cowboys cornerback Jourdan Lewis stopped Ekeler after a 12-yard gain. The Lions rallied to pull within four points early in the fourth quarter on Matthew Stafford's second TD pass to Marvin Jones.
    Lime Essence 2018 Aston Martin Vantage Gets Walkaround, Revs Its Engine

    Lime Essence 2018 Aston Martin Vantage Gets Walkaround, Revs Its Engine

    Here it is! After 12 years, Aston Martin has finally unveiled a successor to its hot-selling Vantage sports vehicle . Aston Martin will kick off customer deliveries of the fixed roof model in the second quarter of 2018.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.