Singapore GDP Growth Revised Down to 2.1% YoY in Q2


The Singaporean economy grew by 2.1 percent year-on-year in the second quarter of 2016, the same pace as in the previous three months but slightly lower than a preliminary estimates of a 2.2 percent growth, final figures showed. On a quarter-on-quarter seasonally-adjusted annualized basis, the economy grew by 0.3 percent, much lower than a 0.8 percent expansion estimated earlier but slightly faster than a 0.1 percent expansion in the first quarter 2016.

In the June quarter, the manufacturing sector advanced 1.1 percent year-on-year, a reversal from a 0.5 percent decline in the previous quarter, mainly supported by the electronics and biomedical manufacturing clusters. 

Growth in the construction sector slowed to 3.3 percent, following a 4.0 percent increase in the previous period, due to a decline in private sector construction works.

The services producing industries grew by 1.4 percent, lower than an earlier estimates of a 1.7 percent increase. The wholesale & retail trade sector expanded by 2.2 percent (from a 2.9 percent growth in the March quarter, driven by motor vehicle sales). The transportation & storage rose 2.9 percent, following a 0.1 percent contraction in the prior quarter, mostly supported by the water transport segment, which expanded on the back of an increase in sea cargo handled. The accommodation & food services sector posted a 1.6 percent growth, compared to a 1.7 percent expansion in the previous three months, contributed by the accommodation segment, while the performance of the food & beverage segment remained sluggish. The information & communication sector grew by 1.2 percent, following a 3.1 percent expansion in the March quarter. Growth was weighed down by the weak performance of the publishing and broadcasting industries. The finance & insurance sector expanded 0.8 percent, slowing from a 2.7 percent increase, underpinned by the forex trading and insurance segments. The business services sector recorded a 1.2 percent decline, compared to a 0.1 percent growth in the first quarter, mainly due to a decline in real estate segment. Growth in the "other services industries" stood at 1.6 percent, faster than a 0.8 percent rise in the preceding quarter, largely supported by the public administration & defence and education, health  & social services. 

On a quarter-on-quarter seasonally-adjusted annualized basis, the economy advanced 0.3 percent, much lower than a 0.8 percent expansion estimated earlier but slightly faster than a 0.1 percent expansion in the first quarter 2016. A faster increase in the construction sector was unable to offset a decline in the services sector and a slowdown in manufacturing. The construction sector grew by 5.3 percent, accelerating from a 1.4 percent growth in the March quarter. The manufacturing sector grew by 1.0 percent, slowing from a 18.7 percent in Q1. In contrast, the services sector declined by 0.6 percent, mainly due to a 11.2 percent contraction in the finance and service sector, a 4.0 percent drop in the accommodation & food services and a 3.6 percent drop in the business services sector.

Meanwhile, amid uncertainties about Brexit,  the rising corporate credit levels in China and slowing global demand, the Ministry of Trade and Industry Singapore narrowed its economic growth forecast to 1 to 2 percent for 2016 from an earlier projection of 1 to 3 percent.

Singapore GDP Growth Revised Down to 2.1% YoY in Q2


Statistics Singapore l Rida Husna | rida@tradingeconomics.com
8/11/2016 4:48:11 AM