Singapore economy expands 4.6% in Q3, highest growth in three years

15:08 | 13/10/2017 Global Economy

The Singapore economy expanded by 4.6 per cent in the third quarter, the highest growth in more than three years and much better than forecast.

PHOTO: ST FILE

Analysts polled by Bloomberg had tipped growth of 3.8 percent in the three months to September, after the economy grew by a stronger-than-expected 2.9 percent in the second quarter as exports and manufacturing rebounded.

The manufacturing sector continued its strong performance, growing by 15.5 percent on a year-on-year basis in the third quarter, faster than the 8.2 percent growth in the previous quarter, according to advance estimates from the Ministry of Trade & Industry on Friday (Oct 13).

Growth was driven by the electronics, biomedical manufacturing and precision engineering segments. On a quarter-on-quarter basis, manufacturing grew at a faster pace of 23.1 percent, compared to the 3.2 percent growth in the second quarter.

The services producing industries grew by 2.6 percent, similar to the 2.5 percent growth in the second quarter, with growth largely coming from the finance & insurance, wholesale & retail trade and transportation & storage segments. Quarter-on-quarter, the services sector expanded by 1.5 percent, moderating from the 3.3 percent growth in the previous quarter.

The construction sector continued to suffer, contracting by 6.3 percent, extending the 6.8 percent decline in the previous quarter. The sector was weighed down mainly by continued weakness in private sector construction activities. Quarter-on-quarter, construction contracted by 9.2 percent, a reversal from the 2.4 percent growth in the second quarter.

The manufacturing sector continued its strong performance, growing by 15.5 percent on a year-on-year basis in the third quarter, faster than the 8.2 percent growth in the previous quarter, according to advance estimates from the Ministry of Trade & Industry on Friday (Oct 13).

Growth was driven by the electronics, biomedical manufacturing and precision engineering segments. On a quarter-on-quarter basis, manufacturing grew at a faster pace of 23.1 percent, compared to the 3.2 percent growth in the second quarter.

The services producing industries grew by 2.6 percent, similar to the 2.5 percent growth in the second quarter, with growth largely coming from the finance & insurance, wholesale & retail trade and transportation & storage segments. Quarter-on-quarter, the services sector expanded by 1.5 percent, moderating from the 3.3 percent growth in the previous quarter.

The construction sector continued to suffer, contracting by 6.3 percent, extending the 6.8 percent decline in the previous quarter. The sector was weighed down mainly by continued weakness in private sector construction activities. Quarter-on-quarter, construction contracted by 9.2 percent, a reversal from the 2.4 percent growth in the second quarter.

The Government in August narrowed upwards its forecast for economic growth this year to 2 percent to 3 percent, from an earlier estimate of 1 percent to 3 percent.

At the same time on Friday morning, the Monetary Authority of Singapore (MAS) in its semi-annual monetary policy decision kept its exchange-rate based policy steady as expected by most analysts even as growth surged to a three-year high.

Theo Straitstimes