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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.”