SINGAPORE: The Singapore economy grew by 1.8 percent on a year-on-year basis in the first quarter, unchanged from the previously released preliminary estimates in April, said the Ministry of Trade and Industry (MTI) on Wednesday. The ministry also maintained the GDP growth forecast for 2016 at 1.0 to 3.0 percent.
According to its statement, The Singapore economy grew by 1.8 percent in the first quarter on a yearly basis; while on a quarter-on-quarter seasonally-adjusted annualised basis, the economy expanded by 0.2 percent, slower than the 6.2 percent growth in the preceding quarter.
The manufacturing sector, which accounts for almost one-fifth of the total economy, contracted by 1.0 percent year-on-year, following the 6.7 percent decline in the previous quarter. Growth was dragged down primarily by the transport engineering and precision engineering clusters. The two clusters were in turn weighed down by the weak performance of firms in the marine & offshore segment and firms that produce equipment for the oil & gas industry respectively. On a quarter-on-quarter seasonally-adjusted annualised basis, the sector grew by 23.3 percent, reversing the 4.9 percent contraction in the fourth quarter of last year.
Growth in the construction sector picked up to 6.2 percent year-on-year, from 4.9 percent in the previous quarter, supported by public sector construction works and private industrial building works. On a quarter-on-quarter basis, the sector expanded at a seasonally-adjusted annualised rate of 10.5 percent, faster than the 6.0 percent growth in the preceding quarter.
The information & communications sector grew by 3.2 percent, mainly driven by growth in the IT & information services segment. The finance & insurance sector expanded by 2.4 percent, unchanged from the previous quarter.
The wholesale & retail trade sector grew by 1.8 percent year-on-year, while the transportation & storage sector contracted at a slower pace of 0.4 percent.
Growth in the accommodation & food services sector came in at 1.5 percent year-on-year, higher than the 0.9 percent in the previous quarter. The improved performance was largely due to the 13.8 percent increase in visitor arrivals. On a quarter-on-quarter seasonally-adjusted annualised basis, the sector grew by 0.3 percent, moderating from the 1.0 percent growth in the preceding quarter.
Looking ahead, MTI said that the global economic outlook remains clouded with significant uncertainties and downside risks. Therefore, it maintained the 2016 growth forecast for the Singapore economy at 1.0 to 3.0 percent.
