Singapore: Economy records anemic growth in Q3; avoids technical recession
October 14, 2015
According to an advanced estimate released by the Ministry of Trade and Industry on 14 October, in Q3, the economy grew an anemic 0.1% over the previous quarter at a seasonally adjusted annualized rate (SAAR). The reading contrasted the 2.5% fall recorded in Q2 and overshot the 0.1% decline the markets had expected.
The mild quarterly expansion in Q3 was mainly the result of quarter-on-quarter SAAR improvements in manufacturing and services, which more than offset a contraction in construction. Manufacturing partially recovered from Q2’s 17.4% fall and decreased a milder 3.6% in Q2. In addition, service rose 0.8% in Q3 (Q2: +0.2% qoq SAAR). However, construction swung from a 12.4% increase in Q2 to a 0.8% fall in Q3.
In year-on-year terms, GDP expanded 1.4%, which was down from the 2.0% growth recorded in Q2 2015 and marked the lowest reading since Q2 2009.
Author: Eric Denis , Economist