The Singaporean economy demonstrated a faster pace of growth in the second quarter, primarily fueled by strong expansion in the construction and services-producing industries. According to advance estimates released by the Ministry of Trade and Industry, gross domestic product (GDP) expanded by 0.7% compared to the same period last year. This growth exceeded expectations, with 11 economists polled by The Wall Street Journal anticipating a 0.4% increase.
Services-producing industries experienced a significant boost, growing by 3.0% year-on-year in Q2, surpassing the 1.8% expansion seen in the first quarter. Similarly, the construction sector posted impressive growth of 6.6%, following a 6.9% expansion. However, manufacturing faced challenges, as it contracted by 7.5% compared to the previous year, a more significant decline than the 5.3% contraction witnessed in Q1.
The advance estimates also indicated a positive trend on a quarter-over-quarter seasonally adjusted basis, with Singapore’s GDP growing by 0.3%. Consequently, this outperformed the first quarter, which recorded a contraction of 0.4%.
Looking ahead, the Ministry of Trade and Industry has maintained its GDP growth forecast for Singapore in 2023 at a range of 0.5% to 2.5%. Although growth is expected to fall towards the mid-point of this range, specific projections have not been provided at this time.
In conclusion, Singapore’s economy demonstrated resilience in the second quarter amidst challenges in manufacturing. The construction and services sectors played a vital role in driving overall growth, surpassing expectations and maintaining an upward trajectory for the nation’s economy.