MTI narrows 2016 GDP growth forecast to 1-1.5%

This is from an earlier forecast of 1-2%.

The Ministry of Trade and Industry has narrowed Singapore's growth forecast for the whole 2016 as the economy grew 1.1% in 3Q16, slower than the 2% from the previous quarter.

MTI expects Singapore economy to grow by only 1% to 1.5%, down by the more positive outlook of 1% to 2% before.

The manufacturing sector expanded 1.3% YoY, similar to the 1.4% growth in the previous quarter.

"Growth was supported by the electronics and precision engineering clusters, which had benefitted from an improvement in external demand for semiconductors and semiconductor equipment respectively," MTI said.

The construction sector also posted growth at 1.6%, but eased from a 2% growth in the preceding quarter. This is due to the expansion in public sector works.

However, the wholesale & retail trade contracted 1.5%, in contrast to the 0.9% growth.

"Growth was weighed down by the wholesale trade segment, which contracted on the back of weakness in the wholesale trading of petroleum and petroleum products," the ministry noted.

The transportation & storage sector, accommodation & food services sector, information & communications sector, and business services sector realized a growth of 0.6%, 2.1%, 2.2%, and 0.2%, respectively.

The finance & insurance sector, on the other hand, contracted 0.7% due to the weakness in the offshore financial intermediation, fund management, and security dealing segments.