Singapore: Economic growth speeds up in Q2 on strong manufacturing
July 12, 2013
In the second quarter, GDP expanded at a seasonally adjusted annualized rate (SAAR) of 15.2% over the previous quarter, according to an advance estimate released by the Ministry of Trade and Industry (MTI) on 12 July. The reading was well above both the 1.8% expansion observed in the first quarter and market expectations of an 8.1% increase. GDP rose 3.7% (Q1: +0.2% year-on-year) compared to the same quarter last year.
The improvement in the second quarter mainly reflected a strong rebound in manufacturing industries, which swung from a 12.7% annualized contraction in the first quarter to a whopping 37.6% expansion in the second, mainly stemming from increases in the biomedical and electronic clusters. Construction output added 9.0% in the second quarter (Q1: +14.3% quarter-on-quarter SAAR) and services grew 9.0% (Q1: +8.1% qoq SAAR).
The Monetary Authority of Singapore expects GDP to grow between 1.0% and 3.0% this year. FocusEconomics Consensus Forecast panellists project that the economy will increase 2.4% in 2013, which is unchanged from last month's forecast. For 2014, the panel expects growth to accelerate to 3.9%.