Singapore’s economy up 2.7 per cent in 1Q17

SINGAPORE: Singapore’s economy grew by 2.7 per cent on a year-on-year (y-o-y) basis in the first quarter of this year, according to the Ministry of Trade and Industry (MTI).

MTI has maintained the gross domestic product (GDP) growth forecast for 2017 at ‘one to three per cent’, with growth likely to come in higher than two per cent barring the materialisation of downside risks.

For the first quarter, the manufacturing sector grew by eight per cent y-o-y, moderating from the 11.5 per cent growth recorded in the previous quarter.

The sector’s growth was primarily driven by the electronics and precision engineering clusters, which expanded on the back of robust global demand for semiconductors and semiconductor manufacturing equipment, it said in a statement here.

The construction sector contracted by 1.4 per cent y-o-y, extending the 2.8 per cent decline in the previous quarter, due to continued weakness in private sector construction works.

Growth in the wholesale & retail trade sector came in at 0.5 per cent y-o-y, similar to the 0.4 per cent in the previous quarter.

Both the wholesale trade and retail trade segments turned in positive growth, with the latter supported by motor vehicle sales.

The transportation & storage sector expanded by 4.2 per cent y-o-y, following the 5.4 per cent expansion in the previous quarter.