ASEAN KEY DESTINATIONS
Singapore economy grows 2.2% in Q2, in line with expectations
SINGAPORE: The Singapore economy grew 2.2 per cent on a year-on-year basis in the second quarter, marginally higher than the 2.1 per cent expansion in the previous quarter and in line with analysts’ expectations, according to advance estimates from the Ministry of Trade and Industry (MTI) on Thursday (Jul 14).
On a quarter-on-quarter, seasonally adjusted and annualised basis, the economy expanded 0.8 per cent, an improvement from the 0.2 per cent growth in the first quarter.
The figures were in line with analysts' forecasts, with economists in a Reuters poll predicting a 2.2 per cent year-on-year growth and a 0.9 per cent growth on a quarterly basis.
The manufacturing sector expanded by 0.8 per cent on a year-on-year basis, a reversal from the 0.5 per cent decline in the previous quarter. Growth was supported by an increase in the output of the biomedical manufacturing and electronics clusters, MTI said. On a quarter-on-quarter basis, the sector grew at an annualised rate of 0.3 per cent, following the 18.4 per cent growth in the preceding quarter.
The construction sector grew by 2.7 per cent, easing from the 4.5 per cent growth recorded in the previous quarter. The moderation in growth was largely due to a slowdown in private sector construction activities, the ministry said. On a quarter-on-quarter basis, the sector expanded at an annualised rate of 0.6 per cent, lower than the 3.5 per cent expansion in the preceding quarter.
Growth in the services producing industries came in at 1.7 per cent, the same pace of growth as in the previous quarter. Growth was driven mainly by wholesale and retail trade, and the transportation and storage sector. Within the retail trade sector, growth was supported by strong motor vehicle sales. On a quarterly basis, the industry grew by 0.5 per cent, reversing the 4.8 per cent contraction in the preceding quarter.
The advance GDP estimates were computed largely from data in the first two months of the quarter - in this case, April and May. They are intended as an early indication of the GDP growth in the quarter, and are subject to revision when more comprehensive data become available, said MTI.
The preliminary GDP estimates for the second quarter, including performance by sectors, sources of growth, inflation, employment and productivity, will be released next month.
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