Singapore economy grew by 3.8 percent on a year-on-year basis in the second quarter of 2018, moderating from the 4.3 percent growth in the previous quarter based on advance estimates.
In a press release on Friday (13 July), Ministry of Trade and Industry (MTI) stated that on a quarter-on-quarter seasonally-adjusted annualised basis, the economy expanded at a slower pace of 1.0 percent compared to the 1.5 percent growth in the preceding quarter.
According to the report, the manufacturing sector grew by 8.6 per cent on a year-on-year basis in the second quarter, slower than the 9.7 per cent growth in the previous quarter. All clusters within the sector expanded during the quarter, with the electronics and biomedical manufacturing clusters contributing the most to the sector’s growth. On a quarter-on-quarter seasonally-adjusted annualised basis, the sector shrank marginally by 0.1 per cent, a reversal from the 21.3 percent growth in the preceding quarter.
The ministry then stated that the construction sector contracted by 4.4 per cent on a year-on-year basis in the second quarter, extending the 5.2 per cent decline in the previous quarter. The sector was weighed down primarily by the continued weakness in private sector construction activities. On a quarter-on-quarter seasonally-adjusted annualised basis, the sector shrank by 14.6 per cent, reversing the 0.9 per cent growth in the preceding quarter.
It also noted that the services producing industries expanded by 3.4 per cent on a year-on-year basis in the second quarter, easing from the 4.0 per cent growth in the previous quarter.
MTI stated that growth was supported primarily by the finance & insurance and wholesale & retail trade sectors. On a quarter-on-quarter seasonally-adjusted annualised basis, the services producing industries grew by 2.5 per cent, a turnaround from the contraction of 1.4 per cent in the preceding quarter.
The report stated that the ministry 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 2018.
