Macroeconomic Forecast Singapore

Singapore's real GDP growth came in at an annualised -6.5% quarter-on-quarter (seasonally adjusted) in Q211, a steep contrast to the 27.2% expansion recorded in the preceding quarter. On a year-on-year basis basis, headline growth increased by just 0.9%, a dismal figure compared with 9.3% in Q111. The weakening manufacturing sector, as well as a deceleration in service industry expansion, should continue to place downward pressure on the country's full-year economic growth. In all, we maintain our view that Singapore's economy will expand by only 5.9% in 2011 before decelerating to 4.4% in 2012.

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