The slowdown of growth of Singapore’s GDP to 0.1 percent in the second quarter of 2019

The slowdown of growth of Singapore’s GDP to 0.1 percent in the second quarter of 2019

The economy of Singapore grew 0.1 percent as compared with the last year’s gross domestic product of second quarter, much less progressive than the 1.1 percent growth registered in the last quarter, according to advanced forecasts from the Ministry of Trade and Industry.

When comparing to the results of last year’s quarter seasonally-adjusted annualized basis, the economy shrank 3.4 percent, after recording a rise of 3.8 percent earlier.

A continuous downward trend was shown by the manufacturing sectors as it shrank 3.8 percent as compared to the second quarter of last year, after dropping 0.4 percent in the earlier quarter. The Ministry of Trade and Industry attributed the contraction to output drops in the electronics & precision engineering clusters, which more than counterbalanced the output expansions in the rest of the manufacturing clusters.

On a seasonally-adjusted annualized basis of quarter-on-quarter, the sector showed a decline of 6 percent, an improvement from the contradiction of 6.4 percent in the previous quarter.

On the other hand, the construction sector extended its expansion, climbing 2.2 percent year-on-year in the second quarter of 2019, on the back of increased public sector construction activities.

On a seasonally-adjusted annualized basis of quarter-on-quarter, the sector contracted 7.6 percent, after rising 13.3 percent in the previous quarter.

The industry of services-producing increased by 1.2 percent year-on-year in the second quarter of 2019, the same as the previous quarter. At the same time, it also grew by 1.5 percent on a quarter-on-quarter seasonally-adjusted annualized basis, reversing the 4.4 percent growth observed in the last quarter.

Ministry of Trade and Industry stated that the growth was reinforced mainly by the finance & insurance, other services industries, as well as, by information & communications sectors.

Ministry of Trade and Industry also revealed that it will release the 2nd quarter’s preliminary GDP estimates, inclusive of the performances by sectors, sources of growth, inflation, productivity & employment, in an Economic Survey of Singapore in the next month.