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Singapore Q3 GDP Growth at 3-Year High

Singapore Q3 GDP Growth at 3-Year HighSingapore Q3 GDP Growth at 3-Year High

Singapore’s economy powered its way into its strongest gross domestic product growth in more than three years for the third quarter of 2017, but economists expect growth to moderate as a result of a slowdown in manufacturing.

Q3’s stellar growth of 4.6% came in much higher than the 2.9% of the preceding quarter, surprising most economists; a poll by Bloomberg carried out earlier pegged the median growth forecast among them at 3.8%, CNA reported.

The advance estimates by the ministry of trade and industry were unveiled on Friday, based on data from July and August 2017, the first two months of the quarter. On a quarter-on-quarter seasonally-adjusted annualized basis, the economy expanded by 6.3%, an improvement from the 2.4% growth in the second quarter.

Manufacturing remained the star performer in Q3, but economists noted signs of a more broad-based recovery, with the continued strengthening in services.

The manufacturing sector expanded by a stellar 15.5% year-on-year in Q3, faster than the 8.2% growth in the previous quarter; this was also the fastest growth rate since Q1 2011.

The electronics rally is still going strong and continues to be the main driver, reflecting the global demand for IT products. Going beyond electronics, other clusters within manufacturing with “robust expansions” included precision engineering and biomedical manufacturing.

On a quarter-on-quarter seasonally-adjusted annualized basis, manufacturing grew at a remarkable pace of 23.1%, up from the 3.2% growth in the preceding quarter.

Despite manufacturing’s continued shine, industry watchers do not expect the pace to be sustained in the next few quarters.

 

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