Singapore: Economy contracts in the second quarter
July 13, 2012
In the second quarter, GDP contracted a seasonally-adjusted annualized rate (saar) of 1.1% over the previous quarter, according to advance estimates released by the Ministry of Trade and Industry (MTI) on 13 July. The negative reading contrasted both the 9.4% expansion seen in the first quarter and market expectations of a 0.6% increase. Compared to the same month last year, GDP grew 1.9% (Q1: +1.4% year-on-year). The deterioration was broad-based, as all main sectors worsened over the preceding quarter. In particular, manufacturing output swung from a 20.9% annualized expansion to a 6.0% contraction. Growth in construction also plummeted, stepping down from a robust 27.9% increase in Q1 to a paltry 0.3% expansion, while the services sector added 0.4% (Q1: +2.7% quarter-on-quarter saar). The government anticipates GDP to grow between 1.0% and 3.0% this year.