The gross domestic product (GDP) of Singapore grew by 1.7% year-on-year in the second quarter of 2015, lower than the 2.8% growth in the previous quarter and well below expectations of a 2.4% growth.
On a quarter-on-quarter seasonally adjusted annualized basis, the economy contracted by 4.6%, a reversal from the 4.2% expansion in the preceding quarter, according to advance estimates from the Ministry of Trade and Industry (MTI).
Looking at the three key sectors, manufacturing turned in the weakest performance in Q2, contracting by 4% year-on-year and extending the 2.7% decline in the previous quarter. MTI attributed the results largely to a fall in output in biomedical manufacturing and transport engineering.
On a quarter-on-quarter basis, the sector contracted by 14%, reversing the 0.4% expansion in the preceding quarter.
Analysts said the stumble in manufacturing caused Singapore’s economy to post its steepest quarterly fall in growth since 2012 and may be a reflection of a slowdown in China, its largest export destination in 2014.
Construction, meanwhile, expanded by 2.7% year-on-year, an improvement from the 2.1% growth recorded in the previous quarter. Growth was supported by stronger expansion in public sector construction activities. On a quarter-on-quarter basis, the sector contracted 0.2%, in contrast to the 8.3% expansion in the preceding quarter.
Growth in the services-producing industries came in at 3% year-on-year, easing from 4.2% n the previous quarter, as wholesale and retail trade and business services slowed, and the transportation and storage sector contracted. On a quarter-on-quarter basis, this group contracted 2.6%, a reversal from the 3.8% expansion in the preceding quarter.
Photo: Jacklee
