Despite the impressive Q4 reading, however, Singapore’s economy remains decidedly weak. On a year-over-year basis, real GDP grew only 2.0 percent in Q4. Moreover, 2015 was the weakest year for growth since 2009, as output rose only 2.1 percent over the year.
On a trade-weighted basis, Singapore’s currency has appreciated slightly on balance over the past year or so. However, relative to the U.S. dollar, the Singapore dollar has actually depreciated roughly 7 percent over the same time period. With the Federal Reserve expected to continue increasing the federal funds rate in the coming quarters, our currency strategy team expects the Singapore dollar to see gradual declines vis-à-vis the greenback in the year ahead.
Read the complete commentary here: singapore-gdp-q4-20160104