SINGAPORE: The Singapore economy grew by 3.2 percent in 2018, a moderation from the 3.9 percent growth recorded in 2017, according to the republic’s Ministry of Trade and Industry (MTI).
For 2019, MTI maintained the Gross Domestic Product (GDP) growth forecast at “1.5 percent to 3.5 percent”, with growth expected to come in slightly below the mid-point of the forecast
range.
On a yearly basis, the Singapore economy grew 1.9 percent in the fourth quarter, easing from the 2.4 percent growth registered in the third quarter.
In releasing the latest figures today, MTI said the manufacturing sector expanded 7.2 percent, slowing from the 10.4 percent growth in 2017.
Growth was primarily supported by the electronics, transport engineering and biomedical manufacturing clusters, said the
ministry.
The construction sector shrank 3.4 percent, a more modest pace of decline than the 10.2 percent contraction in 2017.
MTI said the output of the sector was weighed down by a decline in public sector construction works, even as private sector construction works rose
marginally.
The services producing industries grew 3.0 percent, slightly slower than the 3.2 percent growth recorded in 2017.
Growth was mainly supported by the finance & insurance, business services and wholesale & retail trade sectors, which expanded 5.9 percent, 3.0 percent and 1.5 percent, respectively,
it said.
For the final quarter of 2018, the republic’s manufacturing sector grew 5.1 percent year-on-year, higher than the 3.5 percent growth registered in the third
quarter.
Growth was driven mainly by the biomedical manufacturing, transport engineering and electronics clusters.
The construction sector contracted by 1.0 percent, year-on-year, a more gradual pace of decline compared with the 2.3 percent contraction in the third
quarter.
Output of the sector was weighed down by the weakness in public sector construction works.
The wholesale & retail trade sector contracted 0.6 percent, year-on-year, a turnaround from the 1.8 percent growth in the third quarter, pulled down by the sluggish performance of both the wholesale trade and retail trade segments.
The transportation & storage sector posted growth of 0.5 percent, year-on-year, lower than the 1.9 percent growth in the third quarter.
Growth was largely driven by the air transport segment, which saw improvements in the number of air passengers
handled.
The accommodation & food services sector expanded 2.9 percent, year-on-year, moderating from the 4.0 percent growth in the third quarter.
The food services segment also grew, underpinned by increased sales volumes across all sub-segments, including restaurants, fast food outlets and food
caterers.
Growth in the information & communications sector came in at 6.1 percent, year-on-year, faster than the 5.4 percent recorded in the third
quarter.
The finance & insurance sector grew 4.1 percent, year-on-year, extending the 3.9 percent growth seen in the third
quarter.
The business services sector recorded growth of 2.8 percent on a year-on-year basis, easing from the 3.3 percent growth achieved in the third
quarter.
For 2019 economic outlook, MTI said the pace of growth in the Singapore economy was expected to slow compared with 2018 on the back of global
uncertainties.
Its manufacturing sector is likely to see a significant moderation in growth following two years of robust
expansions.
In particular, the electronics and precision engineering clusters are expected to face external headwinds due to weakening global demand for semiconductors and semiconductor equipment with the fading of the global electronics
cycle.
The growth in outward-oriented services sectors such as wholesale trade, transportation & storage and finance & insurance was expected to ease in tandem with the moderation in growth in key advanced and regional economies.
Nonetheless, the information & communications sector and the education, health & social services segment are expected to remain resilient, supported by firms’ robust demand for information technology and digital solutions and the ramp-up of operations in healthcare facilities, respectively.
Meanwhile, the republic’s construction sector was likely to see a turnaround after three consecutive years of contraction, as the pickup in contracts awarded since the second half of 2017 should translate into construction activities in the quarters ahead, added the ministry.
–Bernama
