Singapore: Economy records strongest performance in two years
January 4, 2016
According to advanced estimates released by the Ministry of Trade and Industry on 4 January, in Q4 the economy grew 5.7% over the previous quarter at a seasonally adjusted annualized rate (SAAR), which marked the strongest performance in two years. The reading was above the 1.7% rise recorded in Q3 and significantly overshot the 1.7% growth the markets had expected.
The quarterly expansion in Q4 was the result of quarter-on-quarter SAAR improvements in all sectors of the economy, with the construction sector recording the most notable rebound. Construction swung from a 4.9% fall in Q3 to a 7.0% rise in Q4. Manufacturing fell 3.1% in Q4, which was a partial recovery from Q3’s 3.5% decline. Finally, services rose 6.5% in Q4 (Q3: 2.9% qoq SAAR).
In year-on-year terms, GDP expanded 2.0% in Q4, which was up from the 1.8% growth recorded in Q3. Overall, Singapore’s economy grew by 2.1% in 2015, which was lower than 2014’s 2.9% rise and marked the softest reading since 2009.
Author: Eric Denis , Economist