George Russell in Hong Kong
Singapore’s economic system continued to contract within the fourth quarter, in line with information launched on Monday, however at a slower tempo than the earlier quarter, as manufacturing, wholesale commerce and finance grew as the results of the coronavirus pandemic on the city-state light.
The south-east Asian nation’s gross home product declined by 2.4 per cent within the fourth quarter from a yr earlier, in line with revised information launched by the Ministry of Commerce and Trade.
The contraction was an enchancment from the 5.8 per cent shrinkage within the previous quarter, the ministry mentioned.
On a quarter-on-quarter seasonally adjusted foundation, the economic system expanded by 3.8 per cent, following the 9 per cent development recorded within the earlier quarter, official information confirmed.
The ministry mentioned it could keep its GDP development forecast for 2021 at 4-6 per cent.
“We increase our 2021 GDP development forecast to five.5 per cent,” mentioned Brian Tan, Barclays analyst in Singapore.
Hawker’s apprentice Lim Wei Keat shows chickens at a meals stall in Singapore
Manufacturing grew by 10.3 per cent year-on-year, extending the 11 per cent enlargement within the third quarter.
“Progress was supported by output expansions within the electronics, biomedical manufacturing, precision engineering and chemical substances clusters, which greater than offset output declines within the transport engineering and basic manufacturing clusters,” the ministry mentioned.
The development sector contracted by 27.4 per cent year-on-year on account of declines in each public sector and personal sector building works, an enchancment from the 52.5 per cent contraction within the third quarter.
The wholesale commerce sector grew by 1.8 per cent year-on-year, a turnround from the 5 per cent contraction within the third quarter, the ministry added.
“The economic system is on a restoration path after the sturdy rebound in Q3 and the trough registered in Q2,” mentioned Irvin Seah, economist at DBS. “Nevertheless, the tempo of development has slowed, as this V-shaped restoration turns right into a sq. root formed trajectory.”
Seah mentioned Singapore had entered a normalisation course of. “As financial actions regularly resume to norm, development momentum will naturally revert to a extra sustainable tempo.”