Singapore GDP up 2.9% YoY in Q2 2024

SINGAPORE: Singapore’s gross domestic product (GDP) grew by 2.9% year-on-year (YoY) in the second quarter of 2024, slightly below the 3.0% growth seen in the previous quarter.

According to advance estimates released on July 12, the quarterly seasonally-adjusted growth was 0.4%, up from 0.3% in Q1 2024, as reported by the Singapore Business Review.

The manufacturing sector rebounded with a 0.5% YoY growth in Q2, a turnaround from a 1.7% contraction in the last quarter. The uptick was driven by increased output across most manufacturing clusters, although biomedical manufacturing and precision engineering faced challenges. Quarter-on-quarter (QoQ), the sector expanded by 0.6%, recovering from a 5.3% contraction in Q1.

Construction also saw positive growth, expanding by 4.3% YoY, up from 4.1% in Q1, supported by increased public sector construction activities. On a quarterly basis, the sector expanded by 2.4%, reversing a 1.9% contraction.

In the services sectors, wholesale and retail trade, alongside transportation and storage, collectively grew by 2.5% YoY, a slowdown from 3.9% in the previous quarter. Notably, water and air transport saw significant growth, while wholesale trade benefited from strong sales of machinery and equipment. However, retail trade declined due to reduced sales in apparel, watches, and optical goods. On a quarterly basis, the services sector expanded by 0.7%, down from 2.7% growth in Q1.

Finance, insurance, and professional services expanded by 5.6% YoY, slightly lower than the 5.7% growth in Q1.

Strong demand for IT solutions, growth in business representative offices, and robust performance in financial services drove this growth. Quarterly, the group rebounded with a 1.4% expansion, following a 2.8% contraction.

Other service sectors including accommodation and food services, real estate, and administrative & support services, grew by 1.9% YoY, down from 3.0% previously. However, these sectors contracted by 0.5% QoQ, reversing from a 2.3% growth. /TISG

Read also: Singapore keeps GDP growth forecast for 2024 at 1% to 3%

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