Singapore: Q4 GDP growth marks one-year high; 2014 economic activity weakest since 2009
February 17, 2015
According to detailed data released by Singapore’s Ministry of Trade and Industry on 17 February, the economy expanded 4.9% over the previous quarter at a seasonally adjusted annualized rate (SAAR) in Q4 2014, which was well above the preliminary estimate of a 1.6% expansion. The revised Q4 result exceeded the 2.6% rise tallied in the third quarter of last year and marked the fastest pace of growth since Q4 2013.
Q4’s strong expansion came on the back of a strong increase in construction and services. Construction accelerated from a 0.7% rise in Q3 to a 2.2% expansion in Q4. Meanwhile, the services sector posted a 7.8% rise in Q4 (Q3: +3.2% quarter-on-quarter SAAR), mainly driven by strong performance in the finance and insurance industry. Conversely, manufacturing output contracted 2.5% in Q4 (Q3: +0.9% qoq SAAR).
In annual terms, GDP expanded 2.1% in Q4 (previously reported: +1.5% year-on-year), which represented a deceleration from the 2.8% increase tallied in Q3. In the full year 2014, the economy expanded 2.9% over the previous year, which represented a slowdown compared to the 4.4% expansion tallied in 2013 and the weakest growth since 2009.
Author: Cecilia Simkievich, Economist