
Singapore's 4Q GDP poised to beat 4.4% forecast
Thanks to stronger manufacturing growth.
According to BofA Merrill Lynch Global Research, it expects 4Q GDP growth to be upgraded to +5.1% (release 20 Feb, Thurs) vs. the flash estimate of +4.4%.
Here's more:
This implies full year GDP growth of +3.9% (vs. +3.7% flash). Manufacturing growth will likely be raised to about +7% (vs. +3.5%), given strong Dec IP and upward revision for Nov IP. Services growth will likely be in line with flash estimates of +5.5%. We expect GDP growth to come in at about +3.2% in 2014, still robust but reflecting a structural slowdown due to labor and geographical constraints. In our view, potential GDP growth for Singapore is about +2%-4%.