2012 GDP growth could undershoot 1.5% target: PM Lee

Will 2013 be worse, then?

According to OCBC, Singapore’s 2013 growth will be at a more sustainable 2-3% range, even if 2012 growth undershoots 1.5%.

Here's more from OCBC:

PM Lee said the government is no longer aiming for ridiculously high” growth of the past, but targeting a more sustainable rate of about 2-3% a year.

He also hinted that 2012 GDP growth could undershoot the 1.5% handle. Note bank loans growth bank loans growth rebounded from 16.5% yoy in Sep to 17.9% yoy (+ 1.5% mom) in Oct. Both business and consumer loans picked up on-month, and could signal that the tight labor market continues to be supportive, especially for big-ticket items like mortgages, albeit general commerce slipped 2.3% mom.

Car loans growth going forward could remain impacted by the high COE premiums. For 2013, we tip only around 10% yoy growth in bank loans.

The SGS bond market is likely to be trading in a relatively quiet mode going into the year-end. While growth expectations are somewhat muted for 2013, the inflation environment is easing slightly – headline CPI moderated from 4.7% yoy (+0.6% mom) in Sep to 4.0% yoy (-0.2% mom) in Oct.

However, COE premiums edged higher for the 21 Nov tender, suggesting little respite for the private road transport price segment in the near-term. As such, we expect that investors may remain biased towards yield enhancement, especially higher-yielding corporate bonds for now.  



More From Singapore Business Review
 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3694-0.0035-0.25%
    USDSGD=X
    1.4743-0.0004-0.03%
    EURSGD=X
    2.0333-0.0023-0.11%
    GBPSGD=X
    87.2782-0.1904-0.22%
    SGDJPY=X
    5.6627+0.0163+0.29%
    SGDHKD=X
    2.7023+0.0042+0.16%
    SGDMYR=X
    9,517.6387+1.624+0.02%
    SGDIDR=X
    4.5273+0.0118+0.26%
    SGDCNY=X
    1.0472+0.0019+0.18%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,184.90+1.80+0.15%
    GCJ15.CMX
    16.66+0.06+0.37%
    SIK15.CMX
    65.50-1.02-1.54%
    ^XAU
    2.740.00-0.05%
    HGK15.CMX
    47.48-0.12-0.25%
    CLK15.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.38-0.04
    ^FVX
    1.93-0.03
    ^TNX
    2.54-0.01
    ^TYX

MARKET MOVERS