Singapore: Economy expands robustly in the second quarter
August 12, 2013
In the second quarter, GDP increased at a seasonally adjusted annualized rate (SAAR) of 15.5% over the first quarter, according to more detailed figures released on 12 August. The figure was revised up slightly from the advance estimate of a 15.2% expansion and overshot market expectations of a 14.2% increase. GDP grew 3.8% compared to the same quarter last year (previously reported:+3.7% year-on-year), coming in well above the 0.2% expansion seen in the first quarter.
Revised figures showed that manufacturing output increased a substantial 32.1% in Q2 (previously reported: +37.6% quarter-on-quarter SAAR), which contrasted the 12.1% contraction observed in Q1. The construction sector expanded by 11.2% in Q2 (previously reported: +9.0% qoq SAAR), which was above the 10.3% rise in the first quarter. Moreover, output in the services sector grew 11.5% in Q2 (previously reported: +9.0% qoq SAAR), which was above the 7.8% increase tallied in the previous quarter.
The government expects GDP to grow between 2.5% and 3.5% this year. FocusEconomics Consensus Forecast panellists project the economy to increase 2.4% in 2013, which is unchanged from last month's forecast. For 2014, the panel expects growth to accelerate to 4.0%.
Author: Dirina Mançellari, Senior Economist