Singapore GDP growth slows down to 0.1% in Q2

The manufacturing sector continued its sharp decline and contracted 3.8%.

Singapore’s GDP grew by 0.1% YoY in the second quarter of 2019, slower than the 1.1% growth in the previous quarter. On a quarter-on-quarter seasonally-adjusted annualised basis, the economy shrank by 3.4%, after posting growth of 3.8% in the preceding quarter.

The manufacturing sector contracted by 3.8% YoY, extending the 0.4% decline in the previous quarter. The contraction was due to output declines in the electronics and precision engineering clusters, which more than offset output expansions in the rest of the manufacturing clusters.

On a quarter-on-quarter seasonally-adjusted annualised basis, the sector shrank by 6.0%, moderating from the 6.4% contraction in the preceding quarter.

Meanwhile, the construction sector grew by 2.2% YoY, extending the 2.7% expansion in the previous quarter. Growth of the sector was supported by an increase in public sector construction activities.

On a quarter-on-quarter seasonally-adjusted annualised basis, the sector contracted by 7.6%, reversing the 13.3% growth in the preceding quarter.

The services producing industries expanded by 1.2% YoY thanks to growth supported primarily by the finance & insurance, “other services industries” and information & communications sectors.

On a quarter-on-quarter seasonally-adjusted annualised basis, the services producing industries shrank by 1.5%, following the 4.4% growth recorded in the preceding quarter.

The Ministry of Trade and Industry (MTI) will release the preliminary GDP estimates for the second quarter, including performance by sectors, sources of growth, inflation, employment and productivity, in its Economic Survey of Singapore in August 2019.