Singapore's full year economy forecast to grow 3.0%

Too bad the construction sector will still be in the doldrums.

The economy grew 3.1% QoQ saar in the third quarter. That translates into a 2.8% YoY growth, which is much in line with analyst expectations, a Bloomberg report said.

Manufacturing growth in the quarter was revised up to 1.9% YoY, from 1.4% previously. September industrial production posted a contraction of 1.2% YoY but the decline was less than what was previously factored in by the official advance GDP estimates. The advance estimate of 1.4% YoY for manufacturing sector growth in the third quarter essentially assumes a decline of 2.8% YoY.

Construction growth came in slightly stronger too. Growth was raised to 1.7% YoY, from 1.4% previously. Despite the revision, outlook for this sector remains cloudy. Margin compression, labour crunch and a cooling property market will continue to weigh down on growth performance for this sector.

Bloomberg’s full year GDP growth forecast remains at 3.0%, which is exactly smack in line with the revised official forecast. In addition, the government is now expecting growth to come in within 2-4% in 2015. We have a forecast of 3.6% penciled in for GDP growth in 2015.

Here’s more from Bloomberg.