Singapore Economy: 2.1% YoY growth in 1Q15

According to advance estimates by the MTI, Singapore’s economy grew by 2.1% YoY in 1Q15, the same rate of growth as in 4Q14, but better than the street’s expectations of 1.7% expansion. On a seasonally adjusted, annualised basis, the economy expanded by 1.1% QoQ, lower than 4.9% in 4Q14.

Manufacturing contracted by 2.3% QoQ, extending the 2.5% decline in 4Q14. Services also contracted by 0.4% QoQ, reversing from the 7.8% expansion in the preceding quarter. Construction was the star performer, with 13.8% QoQ growth in 1Q15 vs 2.2% in 4Q14.

Meanwhile, the MAS has also announced no change in the slope and width of the S$NEER policy band, and the level at which it is centred. This is after it reduced the slope of the band in Jan this year.

Source: OCBC Research - 14 Apr 2015