SINGAPORE — November 24, 2016: Singapore’s economy went down further in the third quarter of this year, growing at only 1.1 per cent year-on-year and slower than the 2.0 per cent in the preceding quarter.
A statement from the Ministry of Trade and Industry (MTI) today said that it expects the economy to grow by 1.0 to 1.5 per cent this year and by 1.0 to 3.0 per cent next year.
The economy grew at a slower pace of 1.7 per cent in the first three quarters of 2016, compared to 2.1 per cent over the same period a year ago. Growth was weighed down primarily by the weak performance of the business services and wholesale & retail trade sectors.
On a quarter-on-quarter seasonally-adjusted annualised basis, the economy contracted by 2.0 per cent, a reversal from the 0.1 per cent growth in the second quarter.
The manufacturing sector expanded by 1.3 per cent year-on-year, similar to the 1.4 per cent growth in the preceding quarter.
Growth was supported by the electronics and precision engineering clusters, which had benefitted from an improvement in external demand for semi-conductors and semi-conductor equipment respectively.
* Another growth was in the construction sector, up by 1.6 per cent year-on-year, but easing from the 2.0 per cent growth in the previous quarter.
Growth was bolstered by an expansion in public sector construction work such as civil engineering.
* The wholesale & retail trade sector contracted by 1.5 per cent year-on-year, in contrast to the 0.9 per cent growth in the second quarter.
Growth was weighed down by the wholesale trade segment, which contracted on the back of weakness in the wholesale trading of petroleum and petroleum products.
* The transportation & storage sector moderated to 0.6 per cent year-on-year, from the 2.9 per cent in the second quarter.
The sector’s growth was held up by the water transport and storage & other support services segments.
* The accommodation & food services sector grew by 2.1 per cent year-on-year, faster than the 1.9 per cent growth recorded in the preceding quarter.
Growth was supported by the accommodation segment, which expanded in tandem with an increase in visitor arrivals.
* The information & communications sector posted growth of 2.2 per cent year-on-year, extending the 1.5 per cent growth in the preceding quarter.
Growth was braced by the IT & information services segment on the back of healthy demand for IT solutions by businesses.
* The finance & insurance sector contracted by 0.7 per cent year-on-year, a pullback from the 0.7 per cent growth in the second quarter.
This was due to weakness in the offshore financial intermediation, fund management and security dealing segments, statistics showed.
* The business services sector expanded by 0.2 per cent year-on-year, slower than the 0.7 per cent growth in the second quarter.
The growth was underpinned by the professional services segment, while the real estate segment continued to contract.
* Growth in the other services industries came in at 2.3 per cent, higher than the 1.7 per cent in the preceding quarter, attributed by the education, health & social services segment.
On the economic outlook for the year, MTI said the global economic conditions have remained sluggish, with full-year growth for 2016 likely to come in marginally weaker than in 2015.
For the rest of the year, Singapore’s GDP growth is expected to remain modest, while for 2017, global growth is projected to pick up slightly. — Bernama