Revised Singaporean GDP data for the March quarter has just been released, and it’s smashed expectations.
Seasonally-adjusted quarterly growth was revised up to 3.2%, well above the preliminary estimate of 1.1% and expectations for an increase to 1.8%.
With the quarterly figure revised substantially higher the annual rate increased to 2.6% from 2.1% reported previously.
Despite topping expectations, the government left its 2015 economic growth forecast unchanged at 2-4%.
“Given the expected improvement in global economic conditions in 2015, externally oriented sectors such as wholesale trade and finance & insurance are likely to see improved growth prospects. However, sector-specific factors could weigh on the growth of some sectors. For instance, low oil prices have dampened the outlook of the marine & offshore industry, while tourism-related sectors such as the accommodation & food services sector may face headwinds in the near term due to lacklustre visitor arrivals. Domestically, the labour market is expected to remain tight, given low unemployment and elevated vacancy rates. As such, labour-intensive sectors such as construction, retail and food services may see their growth weighed down by labour constraints. Nonetheless, other domestically-oriented sectors such as business services are expected to remain resilient.
Taking into account the above factors, and barring the full materialisation of downside risks, the Singapore economy is expected to grow at a modest pace of 2.0 to 4.0 per cent in 2015″.