Singapore's Q3 economic growth slows to 2.2%

Growth in the manufacturing sector slowed to 3.5% from 10.7% in Q2.

Singapore’s economy expanded by 2.2% YoY in Q3 which represents a slower pace of growth from the 4.1% increase in Q2, according to a government statement. 

The headline figure is also below the government’s advanced estimate of 2.6% GDP growth released in October.

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Growth in the manufacturing sector ground to a halt to 3.5% in Q3 from 10.7% in the previous quarter. The development can also be observed for the construction sector which contracted by 2.3% from 4.2%.

Expansion in the wholesale and retail trade sector also eased to 0.5% from 1.5% with weak motor vehicle sales acting as a key drag. There was also a mild slowdown in the information & communications sector and the finance & insurance sector in Q3. 

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However, growth in the transportation and storage as well as the accommodation & food services sector picked up at a faster pace at 2.1% and 4% respectively. The business services sector also expanded by 2.4%.

The Ministry of Trade and Industry maintained the full-year 2018 growth forecast at 2.5% to 3.5%. “For the remaining quarter of the year, Singapore’s GDP growth is expected to moderate but remain firm,” the agency said in a statement.

The growth outlook for 2019 also remains subdued amidst heightening US-China trade tensions, with the manufacturing, wholesale trade, transportation & storage, finance & insurance sectors poised to take a blow.

Taking this into consideration, the MTI expects 2019 GDP growth for 2019 to grow within the range of 1.5% and 3.5%.