Singapore's gross domestic product expanded 2.1 percent on year in the second quarter of 2016, the Ministry of Trade and Industry said on Thursday - accelerating from the 1.8 percent gain in the three months prior.
On a quarterly annualized basis, the Singapore economy expanded 0.3 percent - up from 0.1 percent in the previous three months.
The manufacturing sector expanded 1.1 percent on year, a reversal from the 0.5 percent decline in the previous quarter. Growth was supported by the electronics and biomedical manufacturing clusters. On the other hand, the transport engineering and general manufacturing clusters continued to contract. On a quarterly annualized basis, the sector grew 1.0 percent, slower than the 18.7 percent growth in the preceding quarter.
Growth in the construction sector moderated to 3.3 percent on year, from 4.0 percent in the first quarter, weighed down by a decline in private sector construction works. On a quarterly basis, the sector grew at a seasonally-adjusted annualized rate of 5.3 percent, faster than the 1.4 percent growth in the preceding quarter.
The wholesale & retail trade sector expanded 2.2 percent on year, a pullback compared to the 2.9 percent growth in the previous quarter. Growth was supported by both the wholesale trade and retail trade segments, with the latter bolstered by motor vehicle sales. On a quarterly basis, the sector expanded 3.6 percent, a reversal from the 6.1 percent decline in the preceding quarter.
The transportation & storage sector grew 2.9 percent on year, an improvement from the 0.1 percent contraction in the previous quarter. Growth was supported mainly by the water transport segment, which expanded on the back of an increase in sea cargo handled. On a quarterly basis, the sector expanded 6.7 percent, accelerating from the 4.4 percent growth in the previous quarter.
The accommodation & food services sector saw growth of 1.6 percent on year, similar to the 1.7 percent expansion in the previous quarter. Growth was supported by the accommodation segment, while the performance of the
food & beverage segment remained sluggish. On a quarterly basis, the sector shrank 4.0 percent, a reversal from the 1.2 percent expansion in the preceding quarter.
The information & communications sector expanded 1.2 percent on year, as compared to the 3.1 percent growth in the previous quarter. Growth was weighed down by the weak performance of the publishing and broadcasting industries, whereas the performance of the IT & information services segment remained resilient. On a quarterly basis, the sector grew 1.2 percent, a turnaround from the 3.6 percent decline in the first quarter.
The finance & insurance sector gained 0.8 percent on year, slowing from the 2.7 percent growth in the previous quarter. Growth was largely underpinned by the forex trading and insurance segments. On a quarterly basis, the sector contracted 11.2 percent following the 14.2 percent decline in the preceding quarter.
The business services sector saw a slight contraction of 0.2 percent on year, compared to the 0.1 percent growth in the first quarter. Growth was weighed down primarily by the real estate segment. On a quarterly basis, the
sector contracted 3.6 percent, extending the 0.9 percent decline in the previous quarter.
Growth in the other services industries came in at 1.6 percent on year, higher than the 0.8 percent in the previous quarter. While the public administration & defense and education, health & social services segments had positive growth, the arts, entertainment & recreation segment contracted due to the weak performance of the gaming industry. On a quarterly basis, the sector expanded 4.9 percent, a reversal from the 3.0 percent decline in the preceding quarter.
Upon the release of the data, the MTI narrowed its GDP forecast for 2016 to 1 to 2 percent from 1 to 3 percent.
"The global economic outlook has weakened slightly since three months ago in May. The UK's vote in June to leave the European Union has dampened and also added uncertainties to the global growth outlook. In line with this, most key economies, except for the US, are expected to see similar or slower growth in the second half of the year as compared to the first half of the year," the MTI said.
For comments and feedback: editorial@rttnews.com