SINGAPORE, May 24 — Singapore’s economy grew at a faster pace in the first quarter than initially estimated, supported by a healthy manufacturing sector.
Key highlights
Gross domestic product rose at a seasonally adjusted, annualised rate of 1.7 per cent from the prior three months, trade ministry said today; Bloomberg survey median was 1.6 per cent, while government’s previous projection was 1.4 per cent. GDP expanded 4.4 per cent in the first quarter from the same period in 2017, in line with median estimate
A surge in electronics demand underpinned the city state’s 3.6 per cent expansion last year, but as the export boom starts to moderate, GDP growth is set to ease to a more sustainable pace.
The trade ministry sees the economy expanding 2.5 per cent to 3.5 per cent this year, as growth broadens out to other sectors of the economy. That supports the central bank’s move to gradually tighten monetary policy in April.
Other details from the GDP report
Services industry, which makes up about two-thirds of economy, contracted annualised 1.1 per cent in the first quarter from prior three months. Manufacturing climbed 22.1 per cent, while construction grew for the first time in five quarters, gaining 1.7 per cent.
In a separate release, Enterprise Singapore maintained its forecast for non-oil exports to expand 1 per cent to 3 per cent. — Bloomberg
