TD Securities analysts point out that on a YoY basis, Singapore’s Q2 GDP rose by 0.1%, -3.3% QoQ sa.
Key Quotes
“Weakness was particularly stark in manufacturing -3.1% y/y and wholesale and retail trade -3.2% y/y. On a quarterly basis construction slowed sharply as well as business services.”
“Singapore has cut its forecast for economic growth this year to 0.0%-1.0%, down from a previous projection of 1.5%-2.5%. This should come as little surprise given the run of dire data over recent weeks, weaker Q2 GDP outcome as well as the deteriorating trade outlook.”
“We had expected the MAS to ease policy at the October policy meeting and the data today and growth downgrade effectively seals the case for easing in our view.”
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