According to advance estimates by the MTI, Singapore’s economy grew 1.8% YoY in 4Q16, faster than 3Q16’s 1.2% growth and better than the street’s expectations of 0.3% growth. On a QoQ seasonally-adjusted annualised basis, the economy expanded by 9.1%, a reversal from the 1.9% contraction in the previous quarter.

Manufacturing grew 14.6% QoQ, reversing from 3Q16’s contraction of 8.1% (supported by electronics and biomedical manufacturing on a YoY basis), while the construction sector continued to contract at -4.7% QoQ in 4Q16 following the -14.8% growth in 3Q16. Services producing industries grew 9.4% QoQ, following three quarters of contraction.

For 2016, the economy grew 1.8%, above MTI’s earlier announced GDP growth forecast of 1.0-1.5%.

Source: OCBC Research - 3 Jan 2017