
Economists said the latest economic figures beat expectations and kept the republic away from a technical recession after its GDP shrank in the previous three months.
Most analysts had predicted that Singapore’s economy, considered a bellwether for Southeast Asia’s economic health, would become the first major Asian nation to slip into recession.
The manufacturing sector contracted by 6% year-on-year in the third quarter, extending the 4.9% decline in the previous quarter. The contraction was largely due to a fall in the output of the electronics, biomedical manufacturing, and transport engineering clusters. Quarter-on-quarter, the sector contracted at an annualized rate of 3.6%, following the 17.4% contraction in the preceding quarter.
The construction sector expanded by 1.6% on a year-on-year basis in the third quarter, moderating from the 2% growth recorded in the previous quarter. The slowdown was mainly due to weaker private sector construction activities. On a quarter-on-quarter seasonally adjusted annualized basis, the sector contracted by 0.8%, a reversal from the 12.4% expansion in the preceding quarter.
Growth in the services-producing industries came in at 3% year-on-year in the third quarter, slower than the 3.6% growth in the previous quarter. The moderation in growth was largely due to a slower pace of expansion in the wholesale & retail trade and finance & insurance sectors. On a quarter-on-quarter basis, the services-producing industries expanded at an annualized rate of 0.8%, an improvement from the 0.2% expansion in the preceding quarter.
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