Singapore: Growth beats expectations in Q1 2011
April 14, 2011
According to advance estimates released by the Ministry of Trade and Industry (MTI) on 14 April, GDP expanded 8.5% in the first quarter over the same period the previous year, which came in below the 12.0% growth tallied in Q4 2010. The Q1 2011 reading is equivalent to a seasonally adjusted annualized 23.5% expansion over the previous quarter, suggesting that the economy gained momentum at the outset of this year, as GDP accelerated from a 3.9% qoq saar expansion in the final quarter of last year. Market analysts expected a milder 11.4% qoq saar expansion. The first quarter reading reflected a deterioration in manufacturing activity, which expanded 13.9% (Q4: +25.5% year-on-year), as well as a moderation in the services sector. On the other hand, the construction industry rebounded from a 2.0% drop in Q4 2010 to a 2.6% expansion in the first quarter of this year. The advance estimates for Q1 2011 include data through to February and the final numbers for first quarter GDP growth will be released on 27 May.