According to revised data released by the Ministry of Trade and Industry on Friday, Singapore’s economy experienced a faster growth rate in the second quarter. Despite a contraction in manufacturing, the expansion in the construction and services-producing industries outweighed the decline.
GDP Growth and Sector Performance
Singapore’s gross domestic product (GDP) expanded by 0.5% in the April-to-June period compared to the same period last year. This figure is slightly lower than the initial estimate of 0.7% growth but higher than the 0.4% growth seen in the first quarter of 2023.
The services-producing industries witnessed a notable growth of 2.6% on a yearly basis in the second quarter. This represents a significant improvement compared to the 1.9% expansion in the previous quarter. Similarly, the construction sector saw a growth of 6.8% in the second quarter, following a 6.9% expansion in the previous quarter.
However, the manufacturing industry experienced a decline, with a contraction of 7.3% in the second quarter compared to the same period last year. This contraction accelerated from the 5.4% decline observed in the first quarter.
On a seasonally adjusted quarter-over-quarter basis, Singapore’s GDP grew by 0.1% in the second quarter according to the revised data. This figure is lower than the initial estimate of 0.3% growth but improved from the 0.4% contraction recorded in the first quarter.
Revised GDP Growth Forecast for 2023
The Ministry of Trade and Industry has narrowed Singapore’s GDP growth forecast for 2023 to a range of 0.5%-1.5%. This update reflects a slight adjustment from the previous forecast range of 0.5%-2.5%.