Singapore economy up 2.9% YoY in Q2 2024

This is slightly below the 3.0% growth in the previous quarter.

Singapore's economy grew by 2.9% year-on-year (YoY) in the second quarter of 2024, continuing from the 3.0% growth recorded in the previous quarter, according to advance estimates released on 12 July. 

On a quarter-on-quarter (QoQ) seasonally-adjusted basis, the economy expanded by 0.4%, a slight increase from the 0.3% growth observed in the first quarter of 2024.

The manufacturing sector experienced a 0.5% growth YoY in Q2 2024, marking a recovery from the 1.7% contraction in the preceding quarter. It was driven by increased output across most manufacturing clusters, although biomedical manufacturing and precision engineering clusters lagged. QoQ, the sector grew by 0.6%, rebounding from a 5.3% contraction in the first quarter.

The construction sector also expanded by 4.3% YoY during the same period, up from 4.1% in the previous quarter. It was driven by increased public sector construction activities. It expanded by 2.4% QoQ, reversing the 1.9% contraction.

Amongst the services sectors, wholesale and retail trade and transportation and storage collectively grew by 2.5% YoY, slowing from 3.9% in the previous quarter. 

The transportation and storage sector saw significant growth in water and air transport, whilst wholesale trade benefited from machinery and equipment sales. Conversely, the retail trade sector shrank due to reduced sales in apparel, watches, and optical goods. 

On a QoQ basis, this sector group expanded by 0.7%, down from 2.7% growth in Q1.

Moreover, finance, insurance, and professional services grew by 5.6% YoY, slightly down from 5.7% in Q1. It was driven by strong demand for IT solutions, growth in business representative offices, and robust performance in financial services. QoQ, this group expanded by 1.4%, rebounding from a 2.8% contraction. 

The remaining services sectors, including accommodation and food services, real estate, administrative & support services, and other services, grew by 1.9% YoY, down from 3.0%. They contracted by 0.5% QoQ, reversing from 2.3% growth.