Singapore: Economy contracts in Q2; records lowest performance in almost three years
July 14, 2015
According to an advanced estimate released by the Ministry of Trade and Industry on 14 July, in Q2, the economy contracted 4.6% over the previous quarter at a seasonally adjusted annualized rate (SAAR). The reading contrasted the 4.2% expansion recorded in Q1 and marked the largest contraction since Q3 2012. It also significantly undershot the 1.5% decline the markets had expected. In year-on-year terms, GDP expanded 1.7%, which was notably down from the 2.8% recorded in Q1 2015 and marked the lowest reading since Q3 2012 as well.
The quarterly fall in Q2 was the result of quarter-on-quarter SAAR contractions in every sectors of the economy. Manufacturing slumped by 14.0%, which contrasted the 0.4% increase recorded in Q1. In addition, services sector fell 2.6% in Q2 (Q1: +3.8% qoq SAAR) and construction recorded a slight contraction of 0.2% as well (Q1: +8.3% qoq SAAR).
Author: Eric Denis , Economist