Singapore’s economy demonstrated solid growth in the third quarter, with expansion in the construction and services-producing industries compensating for a contraction in manufacturing. According to advance estimates released by the Ministry of Trade and Industry, the country’s gross domestic product (GDP) increased by 0.7% year-on-year in the period spanning July to September. This growth surpassed the 0.5% recorded in the second quarter and exceeded the expectations of 10 economists surveyed by The Wall Street Journal, who anticipated a 0.45% expansion.
Services-Producing Industries Continue to Expand
The services-producing industries experienced a growth rate of 1.9% year-on-year in the third quarter, although it was slightly slower than the 2.8% growth observed in the previous quarter. Conversely, the construction sector saw a 6.0% increase compared to the same period last year, following a robust expansion of 7.7% in the prior quarter.
Manufacturing Sector Faces Challenges
The manufacturing sector faced challenges in the third quarter, shrinking by 5.0% year-on-year. This decline represented a deceleration from the 7.7% contraction witnessed in the second quarter.
Positive Quarterly Growth
On a quarter-over-quarter seasonally adjusted basis, Singapore’s GDP grew by 1.0% in the third quarter, according to the advance estimates. This performance was significantly better than the minimal 0.1% expansion achieved in the second quarter.