Singapore's gross domestic product climbed a seasonally adjusted 10.0 percent in the first quarter of 2012 compared to the previous three months, the Ministry of Trade and Industry said on Thursday in a final reading.
That was slightly higher than the 9.9 percent growth suggested in last month's flash estimate - but it fell shy of estimates for an 11.0 percent increase.
GDP was down 2.5 percent on quarter in Q4 2011, up 1.5 percent in the third quarter and up 0.9 percent in Q2.
On a yearly basis, GDP was up 1.6 percent - unchanged from the preliminary read, but also missing expectations for a 1.8 percent increase following the 3.6 percent gain in the previous three months.
The manufacturing sector was the key support as it climbed 19.8 percent on quarter after contracting 11.1 percent in the previous three months. The sector fell 1.0 percent on year.
"This turnaround was driven by increased production across all key manufacturing clusters, notably electronics and precision engineering," the MTI said in a statement accompanying the data.
The construction sector added 7.7 percent on year, up from the 2.9 percent growth in the preceding quarter. On a sequential basis, the sector rebounded by an annualized rate of 32.1 percent - largely due to increased construction activities in the residential and institutional building segments, the ministry said.
The wholesale/retail trade sector contracted 0.3 percent on year after adding 0.9 percent in Q4. On a sequential basis, the sector contracted by an annualized rate of 2.3 percent.
"This weak performance was mainly attributable to a decline in re-export volume which negatively affected the wholesale trade segment," the MTI said. "The transportation and storage sector continued to see moderate growth."
Growth in the finance and insurance sector moderated to 0.8 percent on year, from 3.5 percent in the preceding quarter. On a sequential basis, the sector contracted for the second consecutive quarter, by 3.4 percent, partly due to sluggishness in fund management activities.
In contrast, the business services sector posted a faster annual expansion of 3.5 percent and a strong sequential gain of 12.7 percent (annualized), largely due to a pick-up in real estate transaction volume, the ministry said. Tourism-related sectors continued to expand, supported by healthy visitor arrivals.
Upon the release of the data, the MTI maintained its economic growth forecast for 2012 at 1.0 to 3.0 percent.
"The global economy started the year on a firmer footing compared to the second half of 2011, with gains in manufacturing activities supported by increased consumer demand in major economies such as the U.S. and China," the MTI said. "Alongside the improvement in macroeconomic conditions, Singapore's growth momentum has picked up, anchored by a strong upturn in the manufacturing sector."
However, the ministry added that the recovery in the global economy remains fragile and vulnerable to downside risks. It is expected that growth will be curtailed by lackluster export performances amidst the external headwinds.
"There is increased uncertainty surrounding the Eurozone's political climate and fiscal outlook," the ministry said. "A disorderly sovereign debt default in the Eurozone cannot be ruled out at this stage. If it materializes, there will be considerable downsides for the global economy and Singapore's externally oriented industries."
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