Singapore GDP Growth Weakest in Over 7 Years

The Singapore's economy expanded 0.6 percent year-on-year in the September quarter of 2016, compared to a downwardly revised 2.0 percent growth in the previous quarter and missing market consensus of a 1.7 percent expansion, preliminary estimates showed. It was the weakest growth since the June quarter 2009, as manufacturing and services sectors shrank while construction slowed.
Statistics Singapore l Rida Husna | 10/14/2016 1:15:56 AM
Year-on-year, the manufacturing sector contracted by 1.1 percent, following a 1.4 percent expansion in the previous three months. The sector was primarily weighed down by a decline in the output of transport engineering, biomedical manufacturing and general manufacturing clusters.

The services producing industries shrank 0.1 percent, compared to a 1.2 percent growth in the June quarter, largely due to the wholesale & retail trade segment.

Growth in the construction sector came in at 2.5 percent, compared to a 2.6 percent increase in the second quarter. The slowdown was due to a sharper decline in private sector construction activities.

On a quarter-on-quarter seasonally-adjusted annualized basis, the economy unexpectedly contracted by 4.1 percent, following a downwardly revised 0.2 percent expansion in the June quarter while market expected a 0.3 percent growth. It was the first contraction since the second quarter 2015 and the sharpest since the September quarter 2012. A decline was seen in the manufacturing sector (-17.4 percent from a 2.1 percent growth in the June quarter) and the services sector (-1.9 percent from a 0.9 percent contraction). In contrast, construction sector grew by 0.5 percent, following a 1.1 percent growth in the preceding quarter.

Meanwhile, against the backdrop of a less favourable external environment, Singapore’s trade-related sectors will continue to pose a drag on GDP growth in the quarters ahead, the Monetary Authority of Singapore (MAS) said on its website. Growth in the economy is projected to take a step-down in the second half of 2016 from the 2.0 percent recorded in the first half. Full-year GDP growth is likely to come in at the lower end of the 1–2 percent forecast range. Growth is expected to be only slightly higher in 2017. 

Singapore GDP Growth Weakest in Over 7 Years