According to advance estimates by the MTI, Singapore’s economy grew 2.5% YoY in 1Q17, easing from 4Q16’s 2.9% growth and slightly lower than the street’s expectations of 2.6% growth, based on Bloomberg’s consensus. On a QoQ seasonally-adjusted annualised basis, the economy contracted by 1.9%, after posting a sharp rebound of 12.3% in the preceding quarter.

Manufacturing contracted 6.6% QoQ, reversing from 4Q16’s surge of 39.8%, while the construction sector expanded by 5.4% QoQ in 1Q17 following the 0.8% growth in 4Q16. Services producing industries contracted by 2.2% QoQ, following two quarters of expansion.

The MAS also announced that it will maintain the rate of appreciation of the S$NEER policy band at 0%, while the width of the band and the level at which it is centred will be unchanged. As such, it is keeping to its neutral policy stance.

Source: OCBC Research - 13 Apr 2017