Thursday, July 14, 2016

Singapore’s 2Q GDP up 2.2% on year

Singapore’s economy expanded by 2.2% in 2Q16, based on advance estimates by the Ministry of Trade and Industry (MTI).

The latest y-o-y figure is marginally higher than the 2.1% growth reported in the previous quarter.

In a Thursday statement, MTI notes that gross domestic product (GDP) expanded by an annualised 0.8% on a q-o-q basis, which is four times faster than the 0.2% growth in the preceding quarter.

Manufacturing expanded 0.8% y-o-y in the second quarter, a turnaround from its 0.5% 1Q16 decline due to an increase in the output of the biomedical manufacturing and electronics clusters. Overall, the sector grew at an annualised rate of 0.3% on a q-o-q basis after its 18.4% growth in the preceding quarter.

Construction eased from its 4.5% growth in the previous quarter, expanding moderately by 2.7% on a y-o-y basis in 2Q16 due to the slowing of private sector construction activities. Q-o-q, the sector expanded at a 0.6% annualised rate, which is lower than its previous quarter’s 3.5% expansion.

Growth in services remained unchanged from the last quarter at 1.7%, driven mainly by wholesale and retail trade sectors – the latter being supported by strong motor vehicle sales – as well as the transportation and storage sectors. On a q-o-q seasonally adjusted basis, the services producing industries’ 4.8% contraction in the preceding quarter was reversed to reflect a 0.5% growth in 2Q.

MTI says it will release its preliminary GDP estimates for 2Q16 in its ‘Economic Survey of Singapore’ report this August, which includes performance by sectors, sources of growth, inflation, employment and productivity.

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