The Singapore's economy expanded by 2.6 percent on a year-on-year basis in the first quarter of 2015, up from a 2.1 percent growth in the preceding quarter and a preliminary estimate, as an expansion in the wholesale & retail trade and construction sector offset a decline in the manufacturing and a slowdown in the finance & insurance sector.
Year-on-year, the wholesale & retail trade sector grew by 4.1 percent, much faster than a 0.6 percent growth in the last quarter, mainly driven by an expansion of the wholesale trade segment on the back of improvements in non-oil re-exports.
The construction sector expanded by 3.31 percent following a 0.7 in the previous quarter, supported by a pick-up in private sector construction activities.
The manufacturing sector contracted by 2.7 percent, following a 1.3 percent decline in the previous quarter, mainly due to a fall in output of the transport engineering, electronics and biomedical manufacturin clusters.
The finance & insurance grew by 7.9 percent, slowing from a 10.3 percent growth in the preceding quarter. Growth of the sector was largely underpinned by the banking cluster, which experienced resilient loans growth and higher net interest margins.
The transportation & storage sector expanded by 1.5 percent, rebounding from a 0.4 percent drop in the previous quarter, mainly due to an increase of the water transport segment, particularly in sea cargo handling.
The accommodation & food services contracted by 0.4 percent, reversing from a 1.3 percent growth in the fourth quarter, largely due to an annual 6.1 percent fall in visitor arrivals.
The information & communications expanded by 4.6 percent, as compared to a 4.4 percent expansion in the previous quarter, mainly driven by the IT & technology services segement.
The business sector advanced by 2.8 percent, as compared to a 2.9 percent growth in the previous quarter, mainly due to the rental & leasing, other professional, scientific & technical services, and other administrative & support services segements.
The other services industries grew by 2.0 percent, slowing from a 2.4 percent in the December quarter. Growth of the sector was weighed down by the arts, entertainment & recreation segement.
For 2015, the Singapore economy is expected to grow at a modest pace of 2.0 to 4.0 percent.
On a quarter-on-quarter seasonally-adjusted annualised basis, the economy expanded by 3.2 percent, moderating from a 4.9 percent expansion in the preceding quarter quarter. The expansion was mainly driven by: the wholesale & retail trade sector (15.1 percent growth from 0.6 percent in the preceding quarter); the construction sector (12.9 percent growth from 2.2 percent) and the transportation & storage (+6.7 percent from +0.3 percent). The manufacturing sector marginally grew by 0.2 percent from a 2.5 percent contraction in the preceding quarter. In contrast, a contraction were seen for: the accommodation & food services (-1.2 percent from -7.4 percent); the information & communications (-0.1 percent from +5.1 percent); the finance & insurance (-12.5 percent from + 36.2 percent) and the other services industries (-0.2 percent from +1.5 percent).
5/26/2015 2:42:18 AM