Monday , May 16 2022

Singapore’s GDP is growing at a slower pace of 6.5% in the third quarter: forward estimates



Moderation in GDP growth was “expected,” given the return to Phase 2 (Increased Alert) and tightened restrictions on COVID-19 in July, said Ms. Selena Ling, head of research and strategy at the U.S. Treasury. OCBC bank.

“Singapore’s economy is sloping to stay above the growth trend in the coming quarters, with the exception of a global resurgence of the virus or a slowdown in the pace of reopening,” he added.

The manufacturing sector grew by 7.5% year-on-year in the third quarter, expanding by 18% in the previous quarter.

MTI stated that growth was boosted by production expansions in all clusters, particularly electronic and precision engineering clusters, which “continued to record strong growth, driven by sustained global demand for semiconductors and equipment. of semiconductors, ”MTI said.

The construction sector expanded 57.9% in the third quarter, slowing from 117.5% in the previous quarter.

MTI said this growth is due “largely to low base effects given the slow resumption of construction activities after last year’s ‘circuit breaker’ period”.

Service-producing industries rose 5.5% in the third quarter. Among the sectors, wholesale and retail trade and transport and storage grew by 5%, expanding growth by 8.5% in the previous quarter.

Although the wholesale trade sector grew thanks to the recovery in external demand, the growth of the transport and storage sector was due in part to low base effects, MTI said, as strict border restrictions they had “weighed heavily” on the airline segment in the third quarter of last year.

The information and communications, finance and insurance and professional services sectors expanded collectively by 7.7%, expanding by 10.1% in the previous quarter.

The remaining group of service sectors (accommodation and food services, real estate, administrative and support services and other services) grew by 3.1%, moderating with respect to the 14.5% expansion recorded on previous quarter.

Within the group, the real estate and other services sectors expanded, while the accommodation and food and administrative and support services sectors were contracted, MTI said.

“The weak performance of the accommodation and restaurant services and administrative and support services sectors was mainly due to ongoing travel restrictions, as well as tighter internal restrictions during the quarter to curb the community’s spread of the virus,” said the ministry.

Singapore’s economy is expected to recover this year after falling 5.4% last year in the country’s worst recession since independence.

The official range of growth forecasts for 2021 was last updated in August to 6-7%.

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