December 2022 Performance
Faced with record-high inflation, the Russia-Ukraine conflict, supply chain disruptions and interest rate hikes, 2022 was a turbulent year for the global financial markets. With China relaxing COVID-19 restrictions and the Bank of Japan adjusting its longstanding yield curve control measures, 2022 continued to deliver surprises even in the last month of the year.
Singapore’s GDP growth halved from 7.6% in 2021 to 3.8% in 2022, which exceeded the government forecast of 3.5%. GDP growth weakened in the fourth quarter of the year, as the reported estimates came in at 2.2%, almost one-half the 4.2% growth for Q3. The Monetary Authority of Singapore (MAS) Core Inflation level remained unchanged in November, at 5.1%, due to the easing in services and utilities inflation, which was offset by larger increases in the cost of food, as well as retail and other goods.
With inflation remaining at elevated levels and signs pointing to an economic slowdown, markets cooled off in December after a relief rally in November. The Dow Jones Singapore Index ended the year with a 2.45% loss for the month and a 14.95% loss for 2022.
The iBoxx SGD Overall gained 1.21% this month, supported by a 1.65% gain from Singapore Government Securities (SGS) and a modest 0.39% gain from the non-sovereigns. Year-to-date, the index returned -5.92%.
