Here's what boosted Singapore's impressive GDP in 2Q

'Modest improvements' seen in other segments.

According to Bank of America Merrill Lynch, Singapore's GDP growth came in at +3.8% in 2Q, above expectations and earlier flash estimate of +3.7%. Higher reading came from stronger services (+5.5% vs. +5% flash estimate), despite softer manufacturing (+0.2% vs. +1.1% flash) and construction (+5.1% vs. +5.6% flash). On a quarter-on-quarter seasonally adjusted annualized basis, GDP expanded a sharp +15.5% from the first quarter.

Growth was led by services, in particular financial services (+13.1% in 2Q vs. +10.6% in 1Q), wholesale & retail services (+5.6% vs. +0.2% in 1Q). A sharp
turnaround was seen in transport & storage (+2.5% vs. -0.9% in 1Q).

Other services components also showed modest improvements, including business services (+3.7%), info-com (+3.5%), hotels & restaurants (+3.2%) and “other services” (+1.7%). Visitor arrivals remained healthy, supporting the tourismrelated segments.