SINGAPORE: The economy expanded 3.6 per cent last year – faster than initial estimates – thanks largely to strong growth in the manufacturing sector, which makes up a fifth of the economy. Growth this year is expected to slow slightly but remain firm, the Ministry of Trade and Industry (MTI) said yesterday.
The Singapore economy, which grew 2.4 per cent in 2016, picked up pace last year on the back of surging global demand for electronic gadgets. This trade-driven lift helped push 2017 economic growth above an earlier estimate of 3.5 per cent – which was already more than double initial forecasts.
Government forecasters are tipping growth of 1.5 per cent to 3.5 per cent this year. MTI expects growth to come in “slightly above the middle of the forecast range”.
The manufacturing sector, which surged 10.1 per cent last year, is likely to continue growing at a brisk clip and support the rest of the economy, said MTI permanent secretary Loh Khum Yean.
The pick-up in economic activity is also broadening out to benefit more sectors, he said. Domestically oriented sectors such as retail and food services are expected to do better on the back of improving consumer sentiment, as the labour market recovery gains traction. However, the construction sector, which shrank 8.4 per cent last year, is likely to remain lacklustre.
