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Singapore’s GDP grew by 2.6 percent in the third quarter of 2018

The Singapore economy grew by 2.6 percent on a year-on-year basis in the third quarter of 2018, moderating from the 4.1 percent growth in the previous quarter based on advance estimates.

The Ministry of Trade and Industry (MTI) announced on last Friday that the economy expanded by 4.7 percent, faster than the 1.2 percent growth in the preceding quarter on a quarter-on-quarter seasonally-adjusted annualised basis.

According to the authority, the manufacturing sector grew by 4.5 percent on a year-on-year basis in the third quarter, slower than the 10.6 percent growth in the previous quarter. Growth was supported mainly by output expansions in the electronics, biomedical manufacturing and transport engineering clusters.

Meanwhile, on a quarter-on-quarter seasonally-adjusted annualised basis, the manufacturing sector expanded at a faster pace of 7.6 percent compared to the 2.9 percent growth in the preceding quarter.

The construction sector contracted by 3.1 percent on a year-on-year basis in the third quarter, extending the 4.2 percent decline in the previous quarter. The sector was weighed down by the weakness in public sector construction activities.

On a quarter-on-quarter seasonally-adjusted annualised basis, the sector grew by 1.7 percent, a turnaround from the contraction of 14.5 percent in the second quarter.

As for the services-producing industries, the ministry stated that it expanded by 2.9 percent on a year-on-year basis in the third quarter, the same pace of growth as in the previous quarter. Growth was largely supported by the finance & insurance, business services and wholesale & retail trade sectors.

On a quarter-on-quarter seasonally adjusted annualised basis, the services producing industries grew by 6.3 percent, faster than the 0.7 percent growth in the preceding quarter.

MTI then noted that it will release the preliminary GDP estimates for the third quarter, including performance by sectors, sources of growth, inflation, employment and productivity, in its Economic Survey of Singapore in November 2018.