The Business Times

Economists cap optimism despite strong Q3 numbers

Volatility, uncertainty hold them back from raising full-year forecasts for now; MAS keeps S$ policy stance

Published Mon, Oct 14, 2013 · 10:00 PM
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THE Singapore economy accelerated in Q3 to overtake market expectations with year-on-year growth of 5.1 per cent - yielding a smaller than feared one per cent annualised contraction from the previous quarter. But the volatility and uncertainty attached to these figures are holding most economists back from hiking full-year growth forecasts, for now.

Such volatility was also alluded to by the central bank, which yesterday decided to keep its monetary policy stance of a rising Singapore dollar unchanged for a third round. The Monetary Authority of Singapore's (MAS) warned that intensified transfers of higher business costs to consumer prices may push core inflation up from 1.5-2 per cent this year to 2-3 per cent in 2014 - tempering optimism over the economy's Q3 showing.

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