The gross domestic product (GDP) of Singapore grew by 1.9% year-on-year in the third quarter of 2015, and is expected to grow by close to 2% for the whole of 2015, down from the earlier prediction of between 2% and 2.5%, Singapore’s Ministry of Trade and Industry (MTI) says.
The third quarter performance is marginally lower than the 2% growth in the previous quarter, said the ministry.
The outlook for next year remains modest, set by MTI at between 1% and 3%.
On a quarter-on-quarter seasonally adjusted annualized basis, the economy expanded by 1.9% in Q3, a reversal from the 2.6% contraction in the second quarter.
By sector, MTI said manufacturing contracted by 6.2% year-on-year, extending the 4.8% decline in the preceding quarter.
The contraction was primarily due to a fall in the output of the transport engineering, electronics, and precision engineering clusters.
On a quarter-on-quarter seasonally adjusted annualized basis, the sector contracted at a slower pace of 4.6% compared to the 17% decline in the second quarter.
Growth in the construction sector eased to 1.6% year-on-year from 2.2% in the previous quarter, as public sector construction activities fell.
On a quarter-on-quarter basis, the sector contracted at a seasonally adjusted annualized rate of 1.6%, a reversal from the 13% growth in the preceding quarter.
The wholesale & retail trade sector grew by 6.8% year-on-year, faster than the 6% growth in the second quarter.
The growth was due to the stronger performance of the wholesale trade segment. On a quarter-on-quarter seasonally adjusted annualized basis, the sector expanded by 5.3%, accelerating from the 1.1% growth in the previous quarter.
Growth in the transportation & storage sectors improved to 0.3% year-on-year, compared to the 1% contraction in the second quarter. Growth was supported by the air and land transport segments.
On a quarter-on-quarter seasonally adjusted annualized basis, the sector recorded growth of 5.9%, reversing the 10% decline in the previous quarter.
The accommodation and food services sector grew by 0.9% year-on-year, an improvement from the 0.9% decline in the preceding quarter.
Growth was supported by the accommodation segment, which saw better performance on the back of a recovery in visitor arrivals.
On a quarter-on-quarter basis, the sector expanded at a seasonally adjusted annualized rate of 12 per cent, a sharp turnaround from the 2.4% decline in the second quarter.
Singapore’s economy grew at just 2.2% in the first three quarters of 2015 from 3.2% in the same period a year ago, pressed downward by the weak showing of the manufacturing sector.
For the rest of the year, Singapore’s GDP growth is expected to remain resilient amid a challenging external environment. Sectors such as wholesale trade and finance and insurance are likely to continue to post modest growth, even as the manufacturing sector is expected to remain weak.
The ministry said the continued slowdown in the Chinese economy, the services-driven nature of growth in the U.S. as well as the trends of in-sourcing in China and the U.S. may mean that external demand for Singapore and regional countries may not see a significant uplift next year.
