Singapore's Economy Surges in 3Q
By Saurabh Chaturvedi
SINGAPORE--Singapore's economy surged in the third quarter, accelerating at a faster-than-expected pace as the manufacturing sector powered growth.
Gross domestic product jumped 6.3% on a seasonally adjusted and annualized basis compared with the previous quarter, according to advance estimates released by the Ministry of Trade and Industry on Friday. That compared with a revised 2.4% on-quarter expansion in the previous three months and a 3.2% growth forecast by economists polled by The Wall Street Journal.
The island nation's economy is estimated to have expanded 4.6% in the July-to-September quarter from a year earlier, compared with the 3.7% growth forecast in the poll. GDP rose 2.9% on year in the second quarter, the government said.
Manufacturing output grew 15.5% from a year earlier, after a revised 8.2% gain in the second quarter. Services output grew 2.6% on year, while the construction sector contracted 6.3%, the data showed.
Singapore's manufacturing output has shown strength this year thanks to a revival in the electronics sector. However, other segments of manufacturing such as offshore and marine-related production will need to pick up for Singapore to sustain its growth rate. Many analysts predict the electronics cycle will weaken in the coming months, hurting local suppliers to global technology giants such as Apple and Samsung.
Construction, a laggard so far this year, may improve in the coming months as local property prices stabilize and the government continues to build roads and rail infrastructure.
Write to Saurabh Chaturvedi at [email protected]
Corrections & Amplifications
Story corrected at 10:08 p.m. Original misstated the period as "June-to-September" in the third paragraph.