Edward Lee, Chief Economist at Standard Chartered, points out that Singapore’s final Q3 GDP growth was revised lower to 2.2% y/y from the advance print of 2.6% and the downward revision was sharper than expected.
Key Quotes
“Manufacturing sector GDP growth was largely anticipated to be lowered, given a surprisingly soft industrial production print in September. Services growth, however, was also revised down by 0.5ppt to 2.4% y/y.”
“On a sequential basis, growth expanded for the sixth consecutive quarter by 3% q/q on a seasonally adjusted basis.”
“As a result, 9M-2018 GDP growth is now at 3.6% y/y. Despite the weaker-than-expected Q3 GDP print, full-year growth should come in within the government’s forecast of 3-3.5%, unless growth contracts sequentially in Q4.”
“Going into 2019, our core scenario is for GDP growth to decelerate to 2.7%, which is slightly higher than the mid-point of the government’s GDP projection of 1.5-3.5%.”
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