Singapore: Economy expands on strong manufacturing
February 21, 2014
According to detailed data, in the last quarter of 2013, the economy expanded 6.1% over the previous quarter at a seasonally adjusted annualized rate (SAAR). The reading contrasted the preliminary estimate of a 2.7% contraction and overshot the meager 0.1% increase recorded in the third quarter. GDP expanded 5.5% over the same period of the previous year (previously reported: +4.4% year-on-year). In the full year 2013, the economy grew 4.1% surpassing the revised 1.9% growth observed in 2012 (previously reported: +1.3% yoy).
The improvement in the fourth quarter was broad-based. Manufacturing expanded an impressive 10.4% over the third quarter in SAAR terms (previously reported: -4.0% quarter-on-quarter SAAR). In addition, construction rose 1.4% (previously reported: -6.7% qoq SAAR), while services grew 6.1% (previously reported: -1.7% qoq SAAR).
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 up 0.1 percentage points from last month's forecast. For 2015, the panel expects growth to accelerate to 3.8%.
Author: Dirina Mançellari, Senior Economist