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
    1.3582+0.0051+0.38%
    USDSGD=X
    1.5196-0.0071-0.47%
    EURSGD=X
    1.7809-0.0034-0.19%
    GBPSGD=X
    74.6820+0.437+0.59%
    SGDJPY=X
    5.7047-0.0235-0.41%
    SGDHKD=X
    2.9663+0.0023+0.08%
    SGDMYR=X
    9,748.1885-70.3965-0.72%
    SGDIDR=X
    4.9062-0.0141-0.29%
    SGDCNY=X
    1.0263-0.0043-0.42%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,324.00-0.60-0.05%
    GCZ16.CMX
    18.63+0.14+0.76%
    SIU16.CMX
    95.80-0.72-0.74%
    ^XAU
    2.080.00+0.10%
    HGU16.CMX
    47.29-0.04-0.08%
    CLV16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.24+0.08
    ^FVX
    1.63+0.06
    ^TNX
    2.30+0.03
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.129+0.001+0.78%
    N21.SI
    1.855-0.040-2.11%
    MC0.SI
    2.84+0.02+0.71%
    C52.SI
    4.22-0.05-1.17%
    Z74.SI
    0.58-0.01-1.69%
    5TP.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.29+0.08+38.10%
    5VI.SI
    0.36+0.07+22.03%
    BPF.SI
    0.192+0.030+18.52%
    AYD.SI
    0.27+0.04+17.39%
    BLU.SI
    0.40+0.05+14.29%
    BFK.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.205-0.055-21.15%
    BTJ.SI
    0.34-0.06-15.00%
    BCD.SI
    0.39-0.06-13.33%
    AYB.SI
    0.31-0.04-11.43%
    5VP.SI
    0.24-0.02-9.43%
    BAZ.SI