A nice new-year present, but headwinds ahoy

AS we embark on 2017, the Singapore economy has just delivered a nice little new year present.

Its 1.8 per cent year-on-year growth in the fourth quarter (based on advance estimates), beat just about every economist's forecast and demolished some, including the measly 0.6 per cent by Reuters, based on a poll.

Full-year growth for 2016 - also 1.8 per cent - was another upside surprise, besting the government's own forecast of 1 to 1.5 per cent and again, ahead of the consensus.

But cheering for 1.8 per cent growth is being grateful for small mercies. While it is better than expec…