RHB | Singapore | Public Demand Drove Small Pick-up In M3 As Loan Growth Worsens

Economic Research	03 May 2016
Singapore
Economic Highlights
Public Demand Drove Small Pick-up In M3 As Loan Growth Worsens Singapore’s broad money supply (M3) growth picked up to 2.2% y-o-y in March, rising from 1.2% the month before. Public demand for credit drove most of the upside, growing 5.4% y-o-y in March, inching higher from its 5.3% reading a month ago. Things were further improved as government deposits grew at a slower pace of 11.2% y-o-y, compared to 15.8% the month before. However, private demand for credit slowed, and net foreign assets shrank during the month, capping some of gains. Despite the increase in money supply, loan growth continued to decline at a quicker clip compared to the first two months of the year, casting a downbeat outlook for 1Q economic growth. Economist:  Ng Kee Chou | +603 92802179
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