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Singapore economy to grow by close to 2 percent in 2015

Staff writer |
The Ministry of Trade and Industry (MTI) said that it expects the Singapore economy to grow by close to 2 percent in 2015, and by 1 to 3 percent in 2016.




The Singapore economy grew by 1.9 percent on a year-on-year basis in the third quarter, marginally lower than the 2 percent growth in the previous quarter. On a quarter-on-quarter seasonally-adjusted annualised basis, the economy expanded by 1.9 percent, a reversal from the 2.6 percent contraction in the second quarter.

The manufacturing sector contracted by 6.2 percent year-on-year, extending the 4.8 percent decline in the preceding quarter. The contraction was primarily due to a fall in the output of the transport engineering, electronics and precision engineering clusters.

On a quarter-on-quarter seasonally-adjusted annualised basis, the sector contracted at a slower pace of 4.6 percent compared to the 17 percent decline in the second quarter.

Growth in the construction sector eased to 1.6 percent year-on-year, from 2.2 per cent in the previous quarter. This was mainly due to weak public sector construction activities. On a quarter-on-quarter basis, the sector contracted at a seasonally-adjusted annualised rate of 1.6 percent, a reversal from the 13 percent growth in the preceding quarter.

The wholesale & retail trade sector grew by 6.8 percent year-on-year, faster than the 6 percent growth in the second quarter. The pick-up in growth was due to the stronger performance of the wholesale trade segment.

On a quarter-on-quarter seasonally-adjusted annualised basis, the sector expanded by 5.3 percent, accelerating from the 1.1 percent growth in the previous quarter.

Growth in the transportation & storage sector improved to 0.3 percent year-onyear, compared to the 1 percent contraction in the second quarter. Growth was supported by the air and land transport segments. On a quarter-on-quarter seasonally-adjusted annualised basis, the sector recorded growth of 5.9 percent, reversing the 10 percent decline in the previous quarter.

The accommodation & food services sector grew by 0.9 percent year-on-year, an improvement from the 0.9 percent decline in the preceding quarter.

Growth was supported by the accommodation segment, which saw better performance on the back of a recovery in visitor arrivals. On a quarter-on-quarter basis, the sector expanded at a seasonally-adjusted annualised rate of 12 percent, a sharp turnaround from the 2.4 percent decline in the second quarter.


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