SINGAPORE: The Singapore economy grew 2.9 per cent in 2014, slower than the 4.4 per cent recorded in 2013, the Ministry of Trade and Industry (MTI) announced today.
It also maintained the growth forecast for 2015 at between 2.0 and 4.0 per cent.
In a statement, MTI said the Singapore economy grew by 2.1 per cent on a year-on-year basis in the fourth quarter of 2014, easing from the 2.8 per cent growth registered in the preceding quarter.
On a quarter-on-quarter seasonally-adjusted annualised basis, it said the economy expanded at a faster pace of 4.9 per cent compared to 2.6 per cent in the previous quarter.
Growth in the manufacturing sector improved from 1.7 per cent in 2013 to 2.6 per cent in 2014, supported by the biomedical manufacturing and chemicals clusters.
On the other hand, growth in the construction sector moderated to 3.0 per cent from 6.3 per cent in 2013, weighed down by private sector construction activities.
The services producing industries grew by 3.2 per cent in 2014, easing from the 6.1 per cent growth in 2013.
Growth was supported mainly by the finance & insurance and business services sectors, which recorded growth rates of 7.7 per cent and 2.9 per cent, respectively.
The wholesale & retail trade, transportation & storage, and information & communications sectors expanded by 1.7 per cent, 1.7 per cent and 3.6 per cent, respectively.
MTI said the global economic outlook has softened in recent months, with growth in 2015 expected to come in only marginally better than in 2014.
It said the pace of recovery was also likely to remain uneven across the economies, with the US economy being the main bright spot.
Eurozone was expected to remain weak, due to sluggish labour market conditions and deflationary pressures, while China’s growth was also expected to ease further in 2015 on the back of sluggish real estate activities, although the slowdown was likely to be contained.
Furthermore, while the recent plunge in oil prices could benefit oil-importing economies, it has dampened growth prospects in oil-exporting economies.
At the same time, the external outlook remained clouded with significant downside risks and uncertainties.
Amidst this challenging global economic environment, MTI noted that externally-oriented sectors such as manufacturing and wholesale trade sectors were likely to face headwinds, it added.
