Singapore 4Q GDP Growth Slower Than Initially Estimated
By Gaurav Raghuvanshi
SINGAPORE--Singapore's economy grew slower than initially estimated in the fourth quarter, though revisions to the third quarter's number brought the full year growth above the earlier forecast.
Gross domestic product expanded 2.1% in October-to-December from the previous quarter on a seasonally adjusted and annualized basis, compared with a 2.8% expansion in advance estimates released last month. The result compared with an upwardly revised 11.2% on-quarter expansion in the third quarter, data from the Ministry of Trade and Industry showed Wednesday.
On a year-over-year basis, GDP grew 3.6% in the fourth quarter, faster than the 3.1% growth estimated last month, though easing from a 5.5% gain in the third quarter.
For the full year, GDP expanded 3.6%, slightly faster than the 3.5% estimated last month and accelerating from a 2.4% growth in 2016. The government expects growth to "moderate but remain firm" this year and come in slightly above the middle of its forecast range of between 1.5% and 3.5%.
For this year, analysts predict services to become the main growth engine for Singapore as electronics production levels off.
The fourth quarter GDP data showed that Singapore's manufacturing sector grew 4.8% from a year earlier, slowing from a 19.1% gain in the third quarter. For the full year, manufacturing expanded 10.1%.
The services sector gathered pace in the second half, growing at 3.5% on year in both the third and fourth quarter. For the full year, services grew 2.8%.
Construction, however, lagged with a 5.0% year-over-year contraction in the fourth quarter, after falling 9.3% in the third quarter of last year.
Write to Gaurav Raghuvanshi at [email protected]