See how Singapore's GDP growth went spiraling down over a four-year period

This quarter's performance was higher than expected.

Singapore’s growth in the second quarter of this year was primarily dragged by the manufacturing sector, which registered higher growth than expected while other growth pillars such as construction and services fell below expectations.

In a report, OCBC details that there may be a modest recovery in electronic output in 2H14, as the economy grew in tandem with the healthy global economic backdrop. Furthermore, the manufacturing drag was also due to a “one-off drop, attributed to a single company and for reasons specific to the company,” which dragged the semiconductor sector in April-May. This, together with a healthy global economic backdrop, may suggest that the slowdown in Singapore’s manufatcuring sector has bottomed-out.

OCBC adds that 1H14 growth of 3.5% yoy is a decent print compared to 2.75% for the same period last year. For 2H14, OCBC reiterates that the healthy global economic backdrop, as well as the likely bottoming-out in the manufacturing sector should allow growth to print above 3.0%.