Singapore Economy

Economy: Singapore's GDP unexpectedly grew 1.8% qoq in seasonally adjusted and annualized terms in 4Q12, besting analysts' predictions of a fourth-quarter contraction and escaping the designation of recession. The outcome is in contrast to the 1.0% contraction predicted by Dow Jones consensus and compares with a 6.3% contraction in 3Q12. Output in the manufacturing sector fell 1.5% yoy in 4Q12 vs a 1.6% contraction in the previous quarter. Services sector output grew 1.5% yoy, while the construction sector expanded 5.9%. The economy expanded only 1.2% for the full year, a figure revealed by PM Lee in a Monday speech. The govt expects growth to remain sluggish between 1% and 3% in 2013.