Singapore GDP Growth Confirmed at 1.8% YoY in Q1


The Singaporean economy expanded 1.8 percent year-on-year in the first three months of 2016, the same pace as in the previous two quarters and matching preliminary estimates, final figures showed. The construction sector grew at a faster pace while the services sector slowed and manufacturing contracted less than in the previous quarter.

In the first quarter 2016, the construction sector advanced 6.2 percent year-on-year, faster than a 4.9 percent growth in the previous quarter, supported by public sector construction activities and private industrial building works.

The manufacturing sector contracted by 1.0 percent, compared to a 6.7 percent decline in the preceding quarter, dragged down mainly by the transport engineering and precision engineering clusters. 

Growth in the services producing industries came in at 1.4 percent, lower than 2.8 percent in the previous quarter. The wholesale & retail trade sector grew by 1.8 percent, slowing from a 6.8 percent expansion in the preceding quarter, largely due to the wholesale trade segment. The accommodation & food services sector advanced 1.5 percent, up from a 0.9 percent growth in the previous quarter, largely due to a 13.8 percent increase in visitor arrivals. The information & communications grew by 3.2 percent, compared to a 3.3 percent in the December quarter, driven by growth in the IT & information services segment. The finance & insurance sector expanded by 2.4 percent, unchanged from the previous quarter. The business services sector rose 0.3 percent, slowing from 0.8 percent, supported by the others and professional services segments. The other services industries grew by 1.4 percent, slower than a 1.7 percent growth, supported by the education, health & social services, as well as public administration & defence segments. In contrast, the transportation & storage contracted 0.4 percent, following a 0.9 percent decline in the final quarter 2015.

On a quarter-on-quarter seasonally-adjusted annualized basis, the economy expanded by 0.2 percent, compared to a flat reading in preliminary estimates but slower than a 6.2 percent growth in the fourth quarter 2015. While the manufacturing sector rebounded (+23.3 percent from -4.9 percent in the preceding quarter), construction sector  grew at a faster pace (+10.5 percent from + 6.0 percent). In contrast, the services producing industries shrank 5.9 percent, following a 7.7 percent growth). A contraction in the services sector was recorded for: wholesale & retail trade (-10.3 percent from +3.7 percent), information & communications (-3.1 percent from +6.4 percent), finance & insurance (-15.2 percent from +34.1 percent), business services (-0.2 percent from +1.8 percent) and other services industries (-0.6 percent from +2.9 percent). Growth was seen for:  transportation & storage (+3.4 percent from -2.6 percent) and accommodation & food services (+0.3 percent from +1.0 percent). 

For 2016, growth forecast for the Singaporean economy is maintained at 1.0 to 3.0 percent.

Singapore GDP Growth Confirmed at 1.8% YoY in Q1


Statistics Singapore l Rida Husna | rida@tradingeconomics.com
5/25/2016 2:34:51 AM