Singapore: Economy decelerates in Q1 on services slowdown
May 26, 2015
According to detailed data released by Singapore’s Ministry of Trade and Industry on 26 May, the economy expanded 3.2% over the previous quarter at a seasonally adjusted annualized rate (SAAR) in Q1 2015, which was well above the preliminary estimate of a 1.1% expansion. However, the revised Q1 result was below the 4.9% rise tallied in Q4 2014.
Q1’s slowdown came on the back of a slowdown in the services sector. The services sector decelerated from a 7.8% rise in Q4 to a 2.1% increase in Q1, mainly driven by a poor performance in the finance and insurance industry. Meanwhile, manufacturing output rebounded from a 2.5% contraction to a mild 0.2% expansion in Q1. In addition, construction accelerated from a 2.2% rise in Q4 to a solid 12.9% expansion in Q1.
In annual terms, GDP expanded 2.6% in Q1 (previously reported: +2.1% year-on-year), which represented an acceleration from the 2.1% increase tallied in Q4.
Author: Eric Denis , Economist