Singapore economy beats forecasts with 1.9% growth in Q3

But full-year growth prospects stay dim.

Singapore's GDP grew 1.9% year-on-year in the third quarter, data from the Ministry of Trade and Industry showed today.

This figure is markedly higher than earlier official forecasts of a 0.1% expansion, and is a far cry from consensus expectations of zero growth.

However, the Q3 GDP figure is marginally lower than the 2.0% growth in the preceding quarter.

Singapore's economy was boosted by the 3.6% year-on-year growth in the services sector, which managed to counter the 6.2% year-on-year contraction in the manufacturing sector.

On a quarter-on-quarter basis, the economy expanded by 1.9%, a turnaround from the 2.6% contraction in the second quarter.

"In line with the sluggish external environment, the Singapore economy grew at a slower pace of 2.2 per cent in the first three quarters of 2015, compared to 3.2 per cent over the same period a year ago. Growth was weighed down primarily by the weak performance of the manufacturing sector," the MTI said.