Singapore’s economy grows by 4.4 pct in 1Q18
SINGAPORE: Singapore’s economy grew by 4.4 per cent on a year- on-year basis in the first quarter (Q118), higher than the 3.6 per cent recorded in the previous quarter.
On a quarter- on- quarter seasonally-adjusted annualised basis, the economy expanded by 1.7 per cent, moderating from the 2.1 per cent growth in the preceding quarter.
In releasing the latest economic figures, the Ministry of Trade and Industry ( MTI) expects the republic’s Gross Domestic Product (GDP) growth for 2018 to come in at “2.5 to 3.5 per cent”.
This is after taking into account the strong performance of the Singapore economy in the first quarter and the slightly improved external demand outlook for the country.
The manufacturing sector grew by 9.8 per cent year- on-year, extending the 4.8 per cent growth in the previous quarter.
The sector’s growth was prima r i ly driven by the electronics, precision engineering and chemicals clusters, which expanded 19.2 per cent, 14.0 per cent and 10.0 per cent respectively.
The construct ion sector contracted by 5.0 per cent yearon-year -- the same pace of decline as in the previous quarter.
Construct ion output was weighed down by continued weakness in both the public and private sector construction activities, said the Ministry.
The wholesale and retail trade sector expanded by 3.0 per cent year-on-year, unchanged from the growth recorded in the previous quarter.
Growth was driven by the wholesale trade segment, which was in turn supported by an increase in the wholesale sales volume of petroleum products.
On the other hand, the retail trade segment contracted, weighed down by a fall in the volume of motor vehicle sales.
Growth in the transportation & storage sector came in at 2.8 per cent year- on-year,moderating from the 5.3 per cent in the previous quarter.
According to the MTI, the water and air transport segments were the main drivers of the sector’s growth, given the healthy expansions in container throughput and air passengers handled respectively.
The accommodation and food services sector grew by 2.0 per cent year- on-year, slowing from the 2.9 per cent growth in in the preceding quarter.
Growth was driven by the accommodation segment, which expanded on the back of higher gross lettings at gazetted hotels in line with the rise in visitor arrivals.
On the other hand, the food services segment contracted, weighed down by a fall in sales volume at restaurants, food caterers and other eating places.
The MTI said the information and communications sector expanded by 5.7 per cent year- on- year, easing from the 6.0 per cent growth in the previous quarter.
The sector’s growth was supported by the IT and informat ion services and telecommunications segments.
Growth in the finance and insurance sector accelerated to 9.1 per cent year- on-year, from 6.3 per cent in the previous quarter.
The sector’s strong performance was due to robust growth in the fund management, financial intermediation and insurance segments.
The business services sector grew by 2.8 per cent year- on-year, faster than the 0.4 per cent growth in the preceding quarter.
Growth was supported by the professional services and “others” segments, even as the contraction in the real estate segment eased.
The “other services industries” expanded by 1.9 per cent yearon-year, slower than the 2.7 per cent growth in the preceding quarter.
The sector’s growth was primarily supported by the arts, entertainment and recreation and education, health and social services segments.
On economic outlook for 2018, the MTI said the pace of growth in the Singapore economy is expected to remain firm in 2018, with growth supported primarily by outward- oriented sectors.
In pa r t i c u l a r, t he manufacturing sector is likely to continue to expand on the back of sustained growth in the electronics and precision engineering clusters, albeit at a more moderate pace as compared to 2017.
Likewise, outward- oriented services sectors such as finance & insurance, transportation & storage and wholesale trade are projected to continue to benefit from healthy external demand. — Bernama