Singapore Q4 GDP likely to be revised upwards

SINGAPORE, Feb 15 (Economic Times): Singapore's economy likely expanded at a faster pace during the fourth quarter of 2012 than was earlier estimated, helped by higher production of oil rigs and pharmaceuticals in the final weeks of the year. The government said Friday that the gross domestic product (GDP) data would be released at 8 am (0000 GMT) on February 22. According to the median estimate of economists polled by Reuters, the city-state's GDP likely grew by 1.2 per cent from a year ago in October-December 2012, faster than the advance estimate of 1.1 per cent. "This implies growth for the full year 2012 could be revised up to 1.4 per cent versus the advance estimate of 1.2 per cent, which should further reinforce the tightening bias in policy," Citigroup economist Kit Wei Zheng said in a note to clients. Singapore's GDP probably expanded by 2.1 per cent at an annualised and seasonally adjusted pace in the fourth quarter from the preceding three months, higher than the advance estimate of 1.8 per cent, according to economists who provided quarter-on-quarter estimates. Singapore, a key Asian business and financial centre, has been suffering from slow growth amid declining demand for its exports and weakness in the financial services. But inflation remains high by historical standards amid a shortage of accommodation and soaring car prices caused by government efforts to limit the number of cars on its roads. Government measures to make it harder for firms to bring in low-cost workers from abroad is also adding to cost pressures. The Monetary Authority of Singapore's current policy stance is to allow a modest and gradual appreciation of the Singapore dollar against an undisclosed basket of currencies to curb inflationary pressures, and most analysts expect the central bank to maintain its stance when it publishes its next monetary policy statement in April. The central bank uses the exchange rate rather than interest rates to influence growth and inflation because Singapore's trade flows dwarfs the tiny domestic economy.