Singapore: Economy rebounds notably in Q3 after significant upward revision
November 25, 2015
According to final data released by the Ministry of Trade and Industry on 25 November, in Q3 the economy grew a revised 1.9% over the previous quarter at a seasonally adjusted annualized rate (SAAR) (previously reported: +0.1% SAAR). The reading contrasted the 2.6% fall recorded in Q2 and significantly overshot the flat growth the markets had expected.
The quarterly expansion in Q3 was mainly the result of quarter-on-quarter SAAR improvements in services and manufacturing, which more than offset a deterioration in construction. Manufacturing fell 4.6% in Q3, which was a partial recovery from Q2’s 17.3% decline. In addition, service rose 3.5% in Q3 (Q2: -0.2% qoq SAAR). However, construction swung from a 13.4% increase in Q2 to a 1.6% fall in Q3.
In year-on-year terms, GDP expanded 1.9%, which was down from the 2.0% growth recorded in Q2 and marked the lowest reading since Q3 2012.
Author: Eric Denis , Economist