SINGAPORE, 21 Nov — Singapore’s economy grew by 0.5 per cent on a year-on-year basis in the third quarter, slightly higher than the 0.2 per cent growth recorded in the previous quarter, according to its Ministry of Trade and Industry (MTI) today.
On a quarter-on-quarter seasonally-adjusted annualised basis, the republic’s economy expanded by 2.1 per cent, a reversal from the 2.7 per cent contraction in the second quarter.
The manufacturing sector shrank by 1.7 per cent year-on-year, moderating from the 3.3 per cent decline in the preceding quarter, weighed down by the electronics cluster which contracted on the back of a decline in output in the semiconductors segment.
All the other clusters in the sector expanded during the quarter, with the biomedical manufacturing cluster posting the strongest growth, the ministry said in a statement here.
The construction sector expanded by 2.9 per cent year-on-year, following the 2.8 per cent expansion in the preceding quarter, supported by both public sector and private sector construction works.
The wholesale and retail trade sector contracted by 3.3 per cent year-on-year, extending the 3.5 per cent decline in the second quarter.
Within the sector, the wholesale trade segment shrank primarily due to a contraction in the machinery, equipment and supplies sub-segment, which was in turn, weighed down by the weak performance of the electronics exports.
The retail trade segment also saw a contraction on the back of declines in both motors vehicular and non-motor vehicular retail sales.
Meanwhile, the transportation and storage sector posted flat growth, slowing from the 2.4 per cent expansion in the preceding quarter.
The air transport segment continued to clock healthy growth on account of an increase in air passenger traffic but the water transport segment contracted due to a fall in total sea cargo volume handled.
Growth in the accommodation and food services sector came in at 2.0 per cent year-on-year, faster than the 1.2 per cent recorded in the previous quarter.
Accommodation and food services segments also recorded growth.
The former grew in tandem with an increase in international visitor arrivals, while the latter expanded on account of higher sales volumes at fast food outlets, restaurants and other eating places.
The information and communications sector grew by 3.4 per cent year-on-year, moderating from the 4.1 per cent expansion in the previous quarter.
The sector’s growth was led by the IT and information services segment, which expanded on the back of healthy demand for IT solutions.
The finance and insurance sector expanded by 4.3 per cent year-on-year, extending the 5.1 per cent growth in the second quarter which was primarily driven by robust demand for payment processing services.
Growth in the business services sector came in at 0.9 per cent year-on-year, slightly faster than the 0.8 per cent recorded in the preceding quarter, supported by the professional services segment.
The “other services industries” posted growth of 2.8 per cent year-on-year, extending the 2.7 per cent growth in the preceding quarter.
Growth was largely supported by the education, health and social services segment, which grew on the back of an expansion in healthcare facilities.
For the remaining quarter of the year, MTI expects the performance of the manufacturing sector and trade-related services sectors such as wholesale trade to remain subdued in view of the ongoing downswing in the global electronics cycle.
However, sectors such as construction, information and communications, finance and insurance, and education, health and social services are projected to continue to post steady growth.
Taking into account the performance of Singapore’s economy in the first three quarters of the year and the outlook for the fourth quarter, the 2019 GDP growth forecast for Singapore to be at “0.5 to 1.0 per cent”.
For next year, it said, global growth is projected to see a modest pickup, led by an improvement in the growth outlook for emerging market and developing economies.
However, growth in several of Singapore’s key final demand markets such as the US and China is expected to ease.
Given the growth outlook for Singapore’s key final demand markets and the projected recovery in the global electronics cycle in the year ahead, MTI expects growth in the Singapore economy to pick up modestly in 2020 as compared to 2019.
Taking into account the global and domestic economic environment, the republic’s economy is expected to grow by “0.5 to 2.5 per cent” in 2020. — Bernama
