Q4 economy grew 1.8% versus Q3 figures, amidst analysts calls for yet another contraction which will push Singapore into a “technical recession”. Overall, 2012 gained an estimated of 1.2% against 2011.
Despite this turnaround, Singapore may not be fully out of the slump. Manufacturing sector contracted by 10.8% annualized, extending the losing streak to 3 consecutive quarters. Construction sector remained strong, growing at 5.9%, but that is to be expected as the Singapore Government continue to invest heavily into infrastructure building.
With global economy potentially picking up at the start of 2013 due to “Cliff” deal cheers, manufacturing sector will readily pick up especially since Singapore’s manufacturing focus mainly on mid-higher tier technological goods with high beta coefficients.
Today’s announcement did not move SGD significantly, with USD/SGD looking unlikely to break 1.215 – 1.225 trading range. Unrelated to this news, a potential swing high has been formed just shy of 1.225 last week, with 1.22 round number acting as interim support against further downside push.