business

Singapore Growth Accelerates in Third Quarter on Export Bounce

Singapore's 3Q GDP Rose 4.6 Percent on Year

Singapore’s economy gained traction in the third quarter as a pickup in exports helped to drive up manufacturing.

Highlights of GDP Report
  • Gross domestic product rose at a seasonally adjusted and annualized rate of 6.3 percent in the third quarter from the previous three months, according to preliminary figures from the trade ministry on Friday. 
  • Median estimate of 12 economists in a Bloomberg survey was for 3.7 percent gain
  • GDP climbed 4.6 percent from a year earlier, versus median estimate of 3.8 percent

Big Picture

Singapore has enjoyed a more solid growth patch this year as global trade continues to rebound and the electronics sector shows a particularly impressive upswing. Prime Minister Lee Hsien Loong said in August that the economy will probably grow 2.5 percent this year, which would be the fastest since 2014.

At the same time, a weak labor market is weighing on consumer demand with retail enduring a painful transition away from traditional brick-and-mortars to e-commerce. Employment contracted in the last two quarters.

Other Details

  • Services industry, which accounts for about two-thirds of economy, grew an annualized 1.5% in the third quarter from the prior three months
  • Manufacturing surged 23.1%; construction contracted 9.2%
  • The data is based on the first two months of the quarter and are likely to be revised

— With assistance by Myungshin Cho, and Ailing Tan

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