Chart of the Day: Singapore GDP growth loses momentum in 2015

No thanks to a contraction in the service industries.

Singapore’s economy experienced an uptick towards the end of 2014, after three consecutive quarters of sluggish growth. However, this rebound is apparently short-lived.

According to MAS, the economy lost momentum at the turn of the year, with the latest Advance Estimates pointing to a mild increase of 1.1% in Q1 2015.

MAS Macroeconomic Review details that from a sectoral perspective, the step-down in growth momentum in Q1 2015 largely resulted from a contraction in the services-producing industries, following a strong outturn in the preceding quarter.

From recent high frequency economic indicators, the financial services-related indicators—such as loans, stock market turnover and forex turnover data—experienced a sharp pullback after the surge in Q4 2014.

Here’s more from MAS:

Meanwhile, wholesale trade and transport activities recorded healthy gains. The construction sector saw a spike in Q1 2015, underpinned by a surge in the residential building segment, with certified payments growing by an average of 7.2% m-o-m SA over the first two months of the year.

These somewhat disparate sectoral outcomes reflect the increasing complexity of Singapore’s growth drivers. Apart from broad macroeconomic trends, several idiosyncratic factors have had a disproportionate impact on the Singapore economy.