Singapore GDP grew 0.7% in Q3, up from 0.5% in Q2

SINGAPORE: Singapore’s GDP grew 0.7 per cent in the third quarter of 2023, up from 0.5 per cent in the previous quarter, according to the Ministry of Trade and Industry (MTI), which gave its advance estimates on Friday (October 13). On a quarter-on-quarter seasonally adjusted basis, the economy expanded by 1 cent, faster than the 0.1 per cent growth in the preceding quarter, MTI said in a press release.

The manufacturing sector contracted by 5 per cent year-on-year in the third quarter of 2023, following the 7.7 per cent contraction in the previous quarter. The weak performance of the sector was due to drop in output in all the manufacturing clusters except transport engineering. On a quarter-on-quarter seasonally adjusted basis, the sector expanded by 0.2 per cent, a turnaround from the 1.5 per cent contraction in the second quarter.

The construction sector grew by 6 per cent year-on-year in the third quarter, extending the 7.7 per cent growth in the preceding quarter. Both public and private sector construction increased. On a quarter-on-quarter seasonally adjusted basis, the sector grew 0.6 per cent, down from 2.7 per cent in the second quarter.

Among the services sectors, the wholesale and retail trade and transportation and storage sectors collectively grew 0.6 per cent year-on-year in the third quarter, slower than the 2.2 per cent growth in the previous quarter. All sectors within the group posted growth. Growth in the wholesale trade sector was mainly driven by the fuels and chemicals segment, while growth in the transportation and storage sector was supported by the air transport segment. On a quarter-on-quarter seasonally adjusted basis, the wholesale and retail trade and transportation and storage sectors as a whole shrank 0.1 per cent in the third quarter after a 3 per cent increase in the preceding quarter.

The information and communications, finance and insurance and professional services sectors expanded 1.5 percent year-on-year in the third quarter after 1.2 per cent growth in the previous quarter. All sectors within the group, except for the finance and insurance sector, expanded during the quarter. Growth in the information and communications sector was primarily due to the IT and information services segment, while growth in the professional services sector was mainly driven by the architectural and engineering, technical testing and analysis and other professional, scientific and technical services segments. Meanwhile, the finance & insurance sector contracted, largely due to the weak performance of the banking and insurance segments. On a quarter-on-quarter seasonally adjusted basis, the sectors in this group collectively expanded by 0.7 per cent in the third quarter, moderating from the 1.1 per cent growth in the second quarter.

The remaining group of services sectors – accommodation and food services, real estate, administrative and support services and other services sectors – grew 4.7 per cent year-on-year in the third quarter after 6.1 per cent growth in the previous quarter. All sectors within the group expanded during the quarter. In particular, the accommodation sector saw robust growth, boosted by international visitor arrivals. On a quarter-on-quarter seasonally adjusted basis, sectors with the group grew 1.4 per cent in the third quarter, up from 0.4 per cent in the previous quarter.

Preliminary GDP estimates for the third quarter of 2023 will be released in the Economic Survey of Singapore in November.