On a quarter-on-quarter basis, Singapore’s economy expanded by 0.3 per cent, avoiding a technical recession.
SINGAPORE: Singapore’s economy grew 0.7 per cent year-on-year in the second quarter of 2023, faster than the 0.4 per cent growth in the preceding quarter, according to advance estimates released by the Ministry of Trade and Industry (MTI) on Friday (Jul 14).
On a quarter-on-quarter seasonally-adjusted basis, Singapore’s economy expanded by 0.3 per cent.
This is a turnaround from the 0.4 per cent contraction in the first quarter, averting the risk of a technical recession which is defined as two consecutive quarter-on-quarter contractions.
The advance GDP estimates for the second quarter are computed largely from data in April and May – the first two months of the second quarter.
They are intended as an early indication of GDP growth in the quarter and are subject to revision when more comprehensive data becomes available, said MTI.
SECTOR PERFORMANCES
The manufacturing sector contracted by 7.5 per cent year-on-year in the second quarter, deteriorating from the 5.3 per cent contraction in the previous quarter.
“The weak performance of the sector was due to output declines across all manufacturing clusters, except for the transport engineering cluster,” said MTI.
On a quarter-on-quarter seasonally-adjusted basis, the sector shrank at a slower pace of 1.3 per cent in the second quarter, compared to the 4.5 per cent contraction in the preceding quarter.
The construction sector grew by 6.6 per cent year-on-year in the second quarter, extending the 6.9 per cent growth in the first quarter. Growth was supported by expansions in both public and private sector construction output.
On a quarter-on-quarter seasonally-adjusted basis, the sector expanded by 2.6 per cent in the second quarter, accelerating from the 0.3 per cent growth in the preceding quarter.
Among the services sectors, the wholesale and retail trade as well as transportation and storage sectors collectively grew by 2.6 per cent year-on-year in the second quarter, a turnaround from the 0.7 per cent contraction in the previous quarter.
All sectors within the group expanded during the quarter.
“Growth in the transportation and storage sector was mainly supported by the water and air transport segments, while that in the wholesale trade sector was driven by the machinery, equipment and supplies, and fuels and chemicals segments,” said MTI.
On a quarter-on-quarter seasonally-adjusted basis, the sectors as a group expanded by 3.4 per cent in the second quarter, rebounding from the 0.5 per cent contraction in the preceding quarter.
The group of sectors comprising the information and communications, finance and insurance, as well as professional services sectors, grew by 1.5 per cent year-on-year in the second quarter, extending the 1.3 per cent growth in the previous quarter.
Within the group, all sectors except for the finance and insurance sector expanded during the second quarter.
The finance and insurance sector contracted on account of the weak performance of the insurance and banking segments.
The remaining group of services sectors – accommodation and food services, real estate, administrative and support services, and other services sectors – grew by 6.1 per cent year-on-year in the second quarter, extending the 7.1 per cent growth in the previous quarter.
All sectors within the group expanded during the quarter. The accommodation sector saw robust growth in tandem with the strong recovery in international visitor arrivals, said MTI.