The economy of Singapore grew by 2.1% year-on-year in 2015, in line with the earlier forecast by the Ministry of Trade and Industry (MTI) of growth of “close to 2.0 per cent.”
In the fourth quarter, the state’s gross domestic product (GDP) grew by 2% on a year-on-year basis, slightly faster than the 1.8% growth in the previous quarter, said MTI in a written statement. On a quarter-on-quarter seasonally annualized basis, the economy expanded at a faster pace of 5.7% in Q4 compared to the 1.7% growth in the preceding quarter.
Based on sectoral performance in the fourth quarter, the manufacturing sector contracted by 6% year-on-year, extending the 5.9% decline in the previous quarter. The sector was primarily weighed down by a decline in the output of the electronics, transport engineering, and precision engineering clusters. On a quarter-on-quarter seasonally adjusted annualized basis, the sector contracted by 3.1%, following the 3.5% contraction in the preceding quarter.
Construction expanded by 2.2% on a year-on-year basis, an improvement from the 1.1% growth recorded in the previous quarter. Growth was supported by a pick-up in public sector construction activities. On a quarter-on-quarter seasonally adjusted annualized basis, the sector expanded by 7%, a reversal from the 4.9% contraction in the preceding quarter.
Growth in the services-producing industries came in at 3.2% year-on-year in the fourth quarter, easing slightly from the 3.4% growth in the previous quarter. Performance was supported mainly by the wholesale & retail trade and finance & insurance sectors. On a quarter-on-quarter basis, the segment expanded at an annualized rate of 6.5%, an improvement from the 2.9% expansion in the preceding quarter.
Private-sector analysts said Singapore beat expectations for overall GDP growth in full-year 2015, which they had estimated at 1.9%. Nonetheless, it is still the economy’s slowest pace in six years.
Photo: William Cho
