Singapore GDP Growth Surpasses Expectations in Q3

The Singaporean economy expanded 4.6 percent year-on-year in the third quarter of 2017, up from 2.9 percent in the prior quarter and stronger than market expectations of a 3.8 percent expansion, led by a sharp acceleration in manufacturing. On a quarterly basis, the advanced estimate showed that the GDP grew an annualized 6.3 percent in Q3, sharply surpassing the 2.4 percent growth of the previous quarter and the 3.2 percent expansion expected by consensus.
Mario | 10/13/2017 12:15:28 AM
On an annualized basis, manufacturing was the main driver of faster-than-expected growth in the September quarter of 2017, as it expanded 15.5 percent after increasing by 8.2 percent in the previous three-month period. Robust expansion in electronics, biomedical manufacturing and precision engineering clusters drove growth.

The services producing industries advanced 2.6 percent, compared to an upwardly revised 2.5 percent rise in the prior quarter. Growth was mainly supported by finance & insurance services, wholesale & retail trade, and transportation & storage.

In sharp contrast, the construction sector plunged 6.3 percent, albeit the contraction was moderately smaller than the 6.8 fall of the previous quarter. The sector was mainly affected by persistent weakness in private sector construction activities.

On a quarterly basis, the GDP grew an annualized 6.3 percent in Q3 after an upwardly revised 2.4 percent expansion in Q2. Manufacturing was the trigger behind the sharp jump, expanding 23.1 percent after a 3.2 percent expansion in the previous quarter. In contrast, construction plummeted 9.2 percent after rebounding by 2.4 percent in Q2.

In 2016, the economy advanced 2 percent, slightly stronger than a 1.9 percent growth in the preceding year.

Singapore GDP Growth Surpasses Expectations in Q3