Q211 Contraction Bolsters Below-Consensus Outlook

BMI View: Advance estimates point to a sobering performance for the Singaporean economy in Q211, with real GDP growth contracting by 7.8% on an annualised sequential basis. While the decline in manufacturing activity can be partly attributed to supply chain disruptions in Japan, the growth trend is unquestionably one of deceleration. With headwinds likely to remain acute next year, we remain cautious on 2012 real GDP growth, forecasting headline expansion of 4.4% versus consensus expectations of 5.1%.

To read the full article, please choose one of the following options: