GDP growth up 0.1% in Q3: MTI estimates

Singapore narrowly escaped a technical recession.

Singapore’s economy grew by just 0.1% YoY in Q3, which showed the same pace of growth as in Q2, according to flash estimates from the Ministry of Trade and Industry (MTI). On a QoQ basis, the economy reversed its 2.7% contraction in the previous quarter to expand by 0.6%. 

Amongst the sectors, construction led quarterly growth, expanding 2.7% YoY in the same quarter. This was thanks to a pickup in both public and private sector construction activities. However, the sector contracted by 1.1% QoQ, but posting a slower pace of decline as compared to the 5.3% contraction in the previous quarter.

The services producing industries also grew by 0.9% YoY in Q3, primarily supported by the finance & insurance, the other services industries and business services sectors. In contrast, trade-related services sectors such as wholesale trade fell, attributed to weak external demand and downturn in the electronics and precision engineering clusters.

On the other hand, the manufacturing sector slowed down by 3.5% YoY over the same period, amidst output declines in the electronics, precision engineering and transport engineering clusters. It has offset the output expansions in the chemicals, biomedical manufacturing and general manufacturing clusters.