Singapore just turned in an insanely strong GDP report

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Singapore GDP smashed expectations in the December quarter of 2015, near quadrupling the increase expected by economists.

According to the government, the advanced GDP reading came in at 5.7% in seasonally adjusted annualised terms (SAAR), stunning markets which had been expecting an expansion of 1.7%.

A sharp acceleration in construction and service sector activity, up 6.5% and 7.0% respectively in SAAR terms, was able to offset a a 3.1% contraction in manufacturing output.

The table below, provided by Statistics Singapore, reveals the breakdown of GDP in both year-on-year and SAAR terms.

Singapore Q4 2015 GDP Breakdown Source: Statistics Singapore

While the quarterly result was stellar, it largely offset weakness seen in the middle two quarters of the year.

On a year-on-year basis the economy grew by just 2.0% with weakness in manufacturing again offset by modest increases in construction and services output.

Over the calendar year, the economy grew by just 2.1%, the slowest expansion recorded since 2009.

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