Based on advance estimates by the MTI, the Singapore economy grew 2.0% YoY in 4Q15, slightly faster than the 1.8% growth in the previous quarter. On a QoQ seasonally-adjusted annualised basis, the economy expanded at a faster pace of 5.7% compared to the 1.7% growth in the preceding quarter. This was also better than the street’s expectations of 1.0% QoQ growth.

For the whole of 2015, the economy grew by 2.1%. This is in line with MTI’s earlier announced GDP growth forecast of “close to 2.0 per cent”. The manufacturing sector contracted by 6.0% YoY in 4Q15, extending the 5.9% decline in the previous quarter, while the construction sector expanded by 2.2% YoY vs 1.1% in 3Q15. As for services, the segment grew 3.2% YoY in 4Q15 vs 3.4% in 3Q15.

Source: OCBC Research - 4 Jan 2016