WORLDWIDE: HEADLINES
Singapore’s 2021 GDP Grows At Fastest Pace In Over A Decade
Singapore’s economy expanded at its fastest annual pace in over a decade in 2021 as the country emerged from its worst recession on record, caused by the deep hit to activity from the coronavirus pandemic.
The city-state’s economy grew 7.2% in 2021, preliminary data showed on Monday, broadly in line with the government’s official projection and rebounding from the record 5.4% contraction in 2020.
The financial and transport hub, often seen as a bellwether of global growth, has staged a rocky recovery as governments around the world shift their coronavirus strategies to living with the pandemic, away from “zero-COVID” policies.
Singapore’s annual gross domestic product growth was the fastest since a 14.5% expansion in 2010, when the economy emerged from the global financial crisis.
“I’m expecting growth to be relatively buoyant. As the world economy starts to improve, I think that will also help to support the overall external demand conditions for Singapore,” said MUFG analyst Jeff Ng. “The main threat continues to be inflation.”
The government has previously said it expects GDP to grow 3% to 5% in 2022.
GDP rose 5.9% in October-December on a year-on-year basis, the Ministry of Trade and Industry said in a statement, faster than the 5.4% growth forecast in a Reuters poll on analysts.
GDP grew 2.6% on a quarter-on-quarter seasonally adjusted basis in October-December, higher than the 1.2% growth in preceding quarter.
Full coverage: REUTERS
Embattled China Evergrande Shares Halt Trading
China Evergrande Group (3333.HK) shares will be suspended from trading on Monday, the embattled property developer said without giving a reason.
Evergrande, the world’s most indebted developer, is struggling to repay more than $300 billion in liabilities, including nearly $20 billion of international market bonds that were deemed to be in cross-default by ratings firms last month after it missed payments.
The property developer missed new coupon payments worth $255 million due last Tuesday, though both have a 30-day grace period.
The firm has set up a risk management committee with many members from state companies, and said it would actively engage with its creditors.
On Friday, Evergrande dialled back plans to repay investors in its wealth management products, saying each investor in its wealth management product could expect to receive 8,000 yuan ($1,257) per month as principal payment for three months irrespective of when the investment matures.
The move highlights the deepening liquidity squeeze at the property developer.
Shares of Evergrande shed 89% last year, closing at HK$1.59 on Friday.
Full coverage: REUTERS
WORLDWIDE: FINANCE/MARKETS
Oil Starts New Year On Positive Note, Pandemic Worries Curb Gains
Oil prices rose on Monday as the market kicked off 2022 on a positive note, although concerns over demand waning due to rapidly spreading COVID-19 pandemic limited gains.
Brent crude added 67 cents, or 0.86%, to $78.45 a barrel, as of 0102 GMT. U.S. West Texas Intermediate crude futures gained 77 cents, or 1.02%, to $75.98 a barrel.
Last year, oil prices rose around 50%, spurred by the global economic recovery from the COVID-19 pandemic slump and producer restraint, even as infections reached record highs worldwide.
U.S. health experts warned Americans to prepare for severe disruptions in coming weeks, with infection rates likely to worsen amid increased holiday travel, New Year celebrations and school reopenings following winter breaks.
Oil analysts have lowered their price forecasts for 2022 as the Omicron coronavirus variant poses headwinds to recovering fuel demand and risks a supply glut as producers pump more oil, a Reuters poll showed on Friday.
A survey of 35 economists and analysts forecast Brent crude would average $73.57 a barrel in 2022, about 2% lower than $75.33 consensus in November. It is the first reduction in the 2022 price forecast since the August poll.
U.S. crude is projected to average $71.38 per barrel in 2022, versus the previous month’s $73.31 consensus.
Full coverage: REUTERS
