Singapore: GDP growth slows at the outset of the year
May 23, 2013
In the first quarter, GDP increased at a seasonally-adjusted annualized rate (saar) of 1.8% over the previous quarter, according to more detailed figures released on 23 May. The figure was revised up from the advance estimate of a 1.4% decline and contrasted market expectations of a 1.2% contraction. Compared to the same quarter last year, GDP grew a meagre 0.2% (previously reported: -0.6% year-on-year), which came in below the 1.5% expansion seen in the fourth quarter.
Revised figures showed that manufacturing output fell a whopping 12.3% in the first quarter (previously reported: -11.3% qoq saar), which contrasted the 3.1% increase observed in Q4. On the other hand, construction rebounded from a 3.9% decline in the fourth quarter to a 16.5% rise in the first (previously reported: +15.1% qoq saar). In addition, output in the services sector grew 7.9% in the first quarter (previously reported: +1.8% qoq saar), which was above the 2.5% increase tallied in the fourth quarter.
The government expects GDP to grow between 1.0% and 3.0% 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%.