M3 Moderates But Loan Growth Uptrend Intact

Economic Research	1 June 2017
Singapore
Economic Update
M3 Moderates But Loan Growth Uptrend Intact Singapore’s M3, including Asian currency units, grew at a slower pace of 7.8% YoY in April, undermined by a softer gain in net foreign position. Meanwhile, public demand for credit picked up sharply, cushioning some of the downside. We expect M3 growth to stay resilient at 5.6% in 2017, albeit at a more moderate pace vs the 8.1% recorded in 2016. Despite the moderation in growth, liquidity conditions remain conducive to economic growth and the strong pick-up in business services and financial services loans point to healthy economic activity. We expect Singapore’s economic growth to remain resilient in 2H17, after moderating from a strong 1Q17. Economist:  Ng Kee Chou | +603 92802179