Singapore GDP


Singapore: Economy slows in Q2 on weak manufacturing, but avoids contraction

August 12, 2014

According to detailed data, in the second quarter, the economy expanded 0.1% over the previous quarter at a seasonally adjusted annualized rate (SAAR). The reading came in well below the 1.8% expansion recorded in the previous quarter. However, it contrasted both the 0.8% contraction reported in the preliminary estimate and the 0.3% decline the market had expected. In annual terms, GDP expanded 2.4%, which halved the 4.8% growth tallied in the previous quarter (previously reported: +2.1% year-on-year).

Q2’s weak growth came on the back of a sharp decline in manufacturing, which tumbled from a 12.3% increase in the first quarter to a 15.2% contraction in the second quarter (previously reported: -19.4% quarter-on-quarter SAAR). The massive deceleration in manufacturing largely was due to a contraction in electronics output and slower growth in the transport engineering sector. Conversely, data showed strength in financial services, which accelerated from a 4.6% increase in the first quarter to an 11.6% expansion in the second quarter.

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 3.8% in 2014, which is unchanged from last month’s forecast. For 2015, the panel expects growth to accelerate to 3.9%.

Author:, Economist

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Singapore GDP Chart

Singapore GDP Q2 2014 1

Note: Quarter-on-quarter changes of seasonally adjusted annualized GDP and year-on-year variation in %.
Source: Ministry of Trade and Industry (MTI) and FocusEconomics Consensus Forecast.

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