Q2 growth slows down in Singapore
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A broad slowdown across sectors dragged down second-quarter economic growth in Singapore. The economy expanded 2.4 per cent in the three months to June compared with the same period last year, the Ministry of Trade and Industry said yesterday.
This is slightly higher than the initial estimate of 2.1 per cent growth released last month, but down from 4.8 per cent growth in the first three months of the year.
The manufacturing sector grew 1.5 per cent in the second quarter over last year, a “sharp slowdown” from 9.9 per cent expansion in the preceding quarter, the ministry said.
This was largely due to a dip in electronics and transport engineering output, it added.
The construction sector expanded 4.4 per cent from last year, down from 6.4 per cent growth in the previous quarter. The slowdown was driven by a fall in private construction activities amid a tepid property market.
While global growth in the first three months turned out slower than expected, recent data suggests that the world economy is recovering modestly. Still, risks remain – including potential escalation of ongoing conflict in oil-producing regions, and impact of tighter regulations in China’s shadow banking sector, it added.
The ministry has narrowed its growth forecast for 2014 to 2.5 to 3.5 per cent, from a previous estimate of 2 to 4 per cent.
