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.