S’PORE EXPANDS 5.2PC IN Q3

Manufacturing sector boom leads country’s quickest growth pace in four years, beating market’s already buoyant expectations

SINGAPORE

SINGAPORE’S economy grew at its quickest pace in nearly four years in the third quarter, thanks to a boom in manufacturing that some analysts say will encourage tighter monetary policy next year.

Yesterday’s revised official numbers beat the market’s already buoyant expectations, and prompted the government to upgrade its full-year 2017 growth estimate to 3.0 to 3.5 per cent on the back of improved global demand.

Gross domestic product expanded 5.2 per cent in JulySeptember from a year earlier versus economists’ forecast of 5.0 per cent growth, said the Ministry of Trade and Industry (MTI). An initial estimate showed growth of 4.6 per cent.

It marked the strongest yearon-year growth since the fourth quarter of 2013 and firmed some economists’ expectations for monetary tightening as soon as the central bank’s next meeting in April.

“Singapore’s strong growth recovery reflects regional trends of trade-exposed countries, capitalising on the rise of global demand to boost growth,” said Trinh Nguyen, senior economist for Natixis in Hong Kong.

Nguyen expects the robust growth will probably allow the Monetary Authority of Singapore (MAS) to tighten its exchangerate based policy in April.

On an annualised and seasonally adjusted basis, the economy grew 8.8 per cent from the previous quarter, beating an initial estimate of 6.3 per cent and economists’ forecasts of a revision up to 7.4 per cent.

Separate data yesterday showed core inflation held steady at 1.5 per cent year-on-year in October, while the industrial production data due today is expected to tick up.

The MTI revised up its GDP growth forecast for this year to 3.0 to 3.5 per cent, from the previous projection of 2.0 to 3.0 per cent gains. Growth next year is expected to be 1.5 to 3.5 per cent.

The data showed the lift to growth came from a broad expansion in manufacturing activity, up 34.6 per cent on the quarter, compared with 4.0 per cent in the second quarter. Reuters

REUTERS PIC Singapore’s strongest year-on-year growth since the fourth quarter of 2013 firms some economists’ expectations for monetary tightening as soon as April.