Singapore: Economic growth returns to positive territory in Q3
October 15, 2014
According to an advanced estimate for GDP released by the Ministry of Trade and Industry on 14 October, in Q3 the economy expanded 1.2% over the previous quarter at a seasonally adjusted annualized rate (SAAR). The reading contrasted the 0.1% contraction recorded in Q2, but was below the 2.0% expansion tallied in Q1. In year-on-year terms, GDP expanded 2.4%, which was unchanged from Q2, but was slightly below the 2.8% that markets had expected.
Q3’s quarterly growth came on the back of a strong rebound in manufacturing, which swung from a 15.1% contraction in Q2 to a 1.2% expansion in Q3. In addition services decelerated over the previous quarter, from a 4.8% expansion recorded in Q2 to a mild 1.3% increase in Q3. Conversely, construction contracted 2.7% in Q3, which was a more pronounced pace than the 2.4% contraction tallied in Q2.
Author: Cecilia Simkievich, Economist