GDP contracted 7% in Q3

The manufacturing sector growth rebounded thanks to electronics, semiconductors.

Singapore’s economy registered a slower decline in the third quarter as economic activity ramped up following the end of the circuit breaker measures.

The gross domestic product (GDP) fell 7% YoY in Q3, improving from the 13.3% decline reported in the second quarter. Compared to Q2, GDP rose 7.9% QoQ.

The manufacturing sector climbed 2% in Q3, in contrast with its 0.8% contraction previously. It mainly attributed its success to the electronics and precision engineering clusters, which were in turn driven by robust global demand for semiconductors and semiconductor manufacturing equipment.

The sector expanded by 3.9% QoQ, a turnaround from the 9.1% shrinkage in Q3.

As for the construction sector, output declined 44.7% YoY, no thanks to the slow resumption of construction activities due to the need for construction firms to implement safe management measures for a safe restart.

On the other hand, the sector grew 38.7% QoQ, as compared to last quarter’s 59.4% when most construction activities had to come to a stop due to the “circuit breaker” and movement restrictions in the foreign worker dormitories.

The services producing industries also diminished by 8% YoY, with all services recording output contractions. The aviation- and tourism-related sectors such as air transport and accommodation continued to see significant contractions, as global travel restrictions and slow travel demand brought air travel and visitor arrivals to a standstill.

Other trade-related services sectors, such as wholesale trade, were also weighed down by weak external demand as major economies around the world continued to grapple with the COVID-19 pandemic.

However, the finance and insurance and information and communications sectors recorded steady growth in Q3. The services producing industries increased by 6.8% QoQ, a reversal from the 11.2% fall seen in Q2.