Singapore GDP Q3 2016


Singapore: Singapore's economy plunges in Q3

October 14, 2016

According to advanced estimates released by the Ministry of Trade and Industry on 14 October, GDP declined a sharp 4.1% in Q3 from the previous quarter at a seasonally adjusted annualized rate (SAAR), down from Q2’s revised 0.2% rise (previously reported: +0.3% quarter-on-quarter). The result was the worst in four years and greatly undershot market expectations of a 0.7% increase due to a broad-based deterioration in all the sectors of the economy, with the manufacturing sector contracting the most. Manufacturing plummeted 17.4% in a drastic reversal from Q2’s mild 2.1% expansion, marking the lowest reading in four years. The services sector contracted 1.9% following the softer 0.9% decline in Q2. Construction decelerated from a 1.1% increase in Q2 to a 0.5% rise in Q3, the worst result in a year.

In year-on-year terms, GDP expanded 0.6% in Q3, which was a substantial deterioration from Q2’s revised 2.0% growth (previously reported: 2.1% year-on-year) and the worst result since June 2009.

The Monetary Authority of Singapore expects GDP to grow at a rate of between 1.0% and 2.0% in 2016. FocusEconomics Consensus Forecast panelists project that the economy will expand 1.7% in 2016, which is unchanged from last month’s forecast. For 2017, the panel expects growth to accelerate to 1.9%, which is also unchanged from last month’s forecast.

Author: Massimo Bassetti, Economist

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Singapore GDP Chart

Singapore GDP Q3 2016

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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