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HomesingaporeSingapore's economy grew 0.7% in Q3, improvement on previous quarter: Advance estimates

Singapore's economy grew 0.7% in Q3, improvement on previous quarter: Advance estimates

SINGAPORE: Singapore’s economy grew 0.7 per cent year-on-year in the third quarter of 2023, faster than the 0.5 per cent growth in the preceding quarter, according to advance estimates released by the Ministry of Trade and Industry (MTI) on Friday (Oct 13).

On a quarter-on-quarter seasonally-adjusted basis, the economy expanded by 1 per cent, faster than the 0.1 per cent growth in the preceding quarter.

The advance GDP estimates for the third quarter are computed largely from data in July and August – the first two months of the third quarter.

They are intended as an early indication of GDP growth in the quarter and are subject to revision when more comprehensive data becomes available, said MTI.

03:05 Min

SECTOR PERFORMANCES

The manufacturing sector contracted by 5 per cent year-on-year in the third quarter of 2023, compared with the 7.7 per cent contraction in the previous quarter.

“The weak performance of the sector was due to output declines across all the manufacturing clusters, except for the transport engineering cluster,” MTI said.

On a quarter-on-quarter seasonally-adjusted basis, the sector grew by 0.2 per cent, a turnaround from the 1.5 per cent contraction in the second quarter.

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Meanwhile, the construction sector grew by 6 per cent year-on-year in the third quarter, extending the 7.7 per cent growth in the second quarter of the year.

According to MTI, this growth was supported by expansions in both the public and private construction output.

On a quarter-on-quarter seasonally-adjusted basis, the construction sector posted growth of 0.6 per cent, expanding at a slower rate from the 2.7 per cent growth in the second quarter.

Among the services sectors, the wholesale and retail trade as well as transportation and storage sectors collectively expanded by 0.6 per cent year-on-year in the third quarter, slower than the 2.2 per cent growth in the previous quarter. 

All sectors within the group recorded expansions.

“Growth in the wholesale trade sector was mainly driven by the fuels and chemicals segment, while growth in the transportation and storage sector was supported by the air transport segment,” said MTI.

On a quarter-on-quarter seasonally-adjusted basis, the sectors as a whole shrank by 0.1 per cent in the third quarter, a reversal from the 3 per cent expansion in the preceding quarter.

The group of sectors comprising the information and communications, finance and insurance, as well as professional services sectors expanded by 1.5 per cent year-on-year in the third quarter, following the 1.2 per cent growth in the previous quarter.

Within the group, all sectors, except for the finance and insurance sector, expanded during the third quarter.

The finance and insurance sector contracted largely due to the weak performance of the banking and insurance segments, MTI said.

On a quarter-on-quarter seasonally-adjusted basis, sectors within the group collectively expanded by 0.7 per cent in the third quarter, moderating from the 1.1 per cent growth in the second quarter.

Growth in the remaining group of services sectors – comprising accommodation and food services, real estate, administrative and support services, and other services sectors – was 4.7 per cent year-on-year in the third quarter, slower than the 6.1 per cent growth in the previous quarter.

All sectors within the group expanded during the quarter. In particular, the accommodation sector saw robust growth on the back of the continued recovery in international visitor arrivals, said MTI.

On a quarter-on-quarter seasonally-adjusted basis, the sectors within the group collectively expanded by 1.4 per cent in the third quarter, accelerating from the 0.4 per cent growth in the preceding quarter.

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