Singapore Economy Crashes In Q3
After two quarters of lacklustre nothingness, Singapore’s economy finally collapased in Q3. Against expectations of no change, GDP QoQ SAAR crashed 4.1% – the worst quarter since Q3 2012. MAS added that it did not expect GDP growth to pick up “significantly” in 2017.
This was lower than the lowest expectation of all 14 economists who forecasted and represents a 4 standard deviation miss…
As Bloomberg reports, Singapore’s central bank left monetary policy unchanged, after easing three times since January last year, even as the economy contracted the most in four years.
Twenty-one of 24 economists surveyed by Bloomberg predicted the Monetary Authority of Singapore would stick to its neutral stance of zero appreciation in the currency. Gross domestic product declined an annualized 4.1 percent in the third quarter from the previous three months, when it expanded 0.2 percent, the trade ministry said in a separate report.
“We do not envisage a prolonged technical recession next year,” Saktiandi Supaat, head of foreign-exchange research at Malayan Banking Bhd. in Singapore, said before the policy decision. “With core inflation still stable and with some risk of an up move, we still think the current policy remains.”
Sing Dollar is total chaos… after an initial jerk higher on no rate cut, it is now tumbling back to 8 month lows…