Singapore (14 October 2020) – Singapore’s seasonally adjusted gross domestic product contracted 7% in the third quarter of the year, compared with the corresponding period last year, as the pandemic continued to take its toll on the city-state.
Economic activity, however, is gathering pace with the 3Q GDP showing a 7.9% expansion when compared to the preceding quarter’s contraction of 13.2%. The improved performance in the third quarter was a result of a phased-in re-opening of the economy following the Circuit Breaker period from 7 April to 1 June 2020, the Ministry of Trade and Industry said in a press release.
Sectoral Performance
The manufacturing sector grew 2% in the third quarter, year-on-year basis, which is a reversal from its 0.8% contraction in 2Q 2020. The manufacturing sector averted a contraction in the 3Q supported by output expansions in the electronics and precision engineering clusters, which in turn benefitted from a robust global demand for semiconductors and semiconductor manufacturing equipment.
The sector expanded 3.9% when compared with the preceding quarter’s contraction of 9.1%.
The construction sector continued to suffer from the pandemic. It shrunk a further 44.7% in the third quarter, year-on-year basis, following a contraction of 59.9% in the 2Q, 2020, year-on-year. The sector however, is also showing signs of a recovery and activity is gathering pace compared with the preceding quarter turning in at 38.7% expansion, from a contraction of 59.4%, quarter-on-quarter.
The services sector contracted 8% in the third quarter, year-on-year, an improvement from the 13.6% shrinkage in the 2Q, year-on-year. Aviation and tourism related services continued to see significant contractions as global travel restrictions remained in place. Consumer-facing sectors such as retail and food services saw an improvement owing to the lifting of the Circuit Breaker. Finance, insurance and information and communications recorded steady growth.
MITI will release the preliminary GDP estimates for the third quarter, including sectoral performance, sources of growth, inflation, employment and productivity in its Economic Survey of Singapore in November 2020.-/- www.halaluniverse.net
