Singapore: Growth moderates in first quarter
April 13, 2012
In the first quarter, GDP increased 1.6% over the same period last year, according to advance estimates released by the Ministry of Trade and Industry (MTI) on 13 April. The subdued reading marks the slowest growth pace recorded since the second quarter of 2011. However, the print overshot market expectations that had GDP rising 1.1%. Compared to the previous quarter, the economy grew a resilient seasonally adjusted annualised rate (saar) of 9.9%, which contrasted the 2.5% decline recorded in the fourth quarter. The moderation in Q1 was the result of a contraction in the manufacturing sector, which dropped 2.0% (Q4 2011: +9.2% year-on-year). In contrast, the services sector stepped up to a 2.9% expansion, following on a 2.1% increase in the previous quarter, while construction output rose 6.2% (Q4 2011: +2.9% yoy). The Monetary Authority of Singapore (MAS) expects the economy to grow between 1.0% and 3.0% this year.