Singapore: Economic activity expands weakly in Q1
April 14, 2014
According to an advance estimate released by the Ministry of Trade and Industry (MTI) on 14 April, in Q1 2014 GDP expanded at a Seasonally Adjusted Annualized Rate (SAAR) of 0.1% over Q4 2013. The reading was well below the 6.1% expansion tallied in the previous quarter and fell short of the 0.4% expansion the market had expected. GDP expanded 5.1% over the same period of last year in Q1 (Q4: +5.5% year-on-year).
The deceleration in the first quarter came on the back of a slowdown in both manufacturing (Q4: +10.4% quarter-on-quarter SAAR; Q1: +4.5% qoq SAAR) and services (Q4: +6.1% qoq SAAR; Q1: -1.8% qoq SAAR). Conversely, construction jumped from a 1.4% increase in the fourth quarter to a 10.7% rise in the first quarter.
The Monetary Authority of Singapore expects GDP to grow between 2.5% and 3.5% in 2014. FocusEconomics Consensus Forecast panelists project that the economy will increase 3.7% in 2014, which is unchanged from last month's forecast. For 2015, the panel expects growth to accelerate to 3.9%.
Author: Dirina Mançellari, Senior Economist