This means Singapore narrowly avoided a technical recession, which is defined as two consecutive quarters of economic decline.
The Singapore economy grew 0.1 percent on a year-on-year basis in the third quarter of 2019, which is the same pace of growth seen in the previous quarter, showed advanced estimates from the Ministry of Trade and Industry (MTI).
On a quarter-on-quarter seasonally adjusted annualised basis, the city-state’s gross domestic product (GDP) expanded 0.6 percent, a reversal from the 2.7 percent contraction registered in the previous quarter.
This means the city-state avoided a technical recession, which is defined as two consecutive quarters of economic decline.
The construction sector led the quarterly growth as it expanded 2.7 percent year-on-year in Q3.
“Growth in the sector was supported by a pickup in both public and private sector construction activities,” said MTI.
The sector, however, contracted 1.1 percent on a quarter-on-quarter seasonally adjusted annualised basis, which is a slower pace of decline than Q2’s 5.3 percent contraction.
The services producing industries also expanded 0.9 percent year-on-year in Q3, continuing the 1.1 percent growth posted in Q2.
“Growth during the quarter was primarily supported by the finance & insurance sector, the other services industries and the business services sector,” noted the ministry.
Meanwhile, the manufacturing sector contracted 3.5 percent year-on-year in Q3, continuing the 3.3 percent decline posted in Q2.
MTI attributed the contraction to “output declines in the electronics, precision engineering and transport engineering clusters, which more than offset output expansions in the chemicals, biomedical manufacturing and general manufacturing clusters”.
On a quarter-on-quarter seasonally-adjusted annualised basis, the sector shrank 0.4 percent, moderating from Q2’s 4.2 percent contraction.
The preliminary GDP estimates for Q3 2019, including the sources of growth, performance by sectors, employment, inflation and productivity, will be released by MTI in its Economic Survey of Singapore in November 2019.
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email firstname.lastname@example.org