Singapore economy expanded 2.0% in 2016, the trade and industry ministry(MTI) said. The MTI has maintained the GDP growth forecast at “1.0 to 3.0%” for 2017.
The 2% economic growth was mostly driven by the last quarter growth which expanded 2.9% year-on-year. On seasonally-adjusted annualised basis, the Q4 GDP expanded by 12.3% from the Q3, reversing the contraction of 0.4% in the third quarter.
By sector, the MTI said the manufacturing sector grew by 11.5% year-on-year in the last quarter, accelerating from the 1.8% growth in the preceding quarter, led by growth in the electronics and biomedical manufacturing clusters. The electronics cluster was supported by a recovery in global semiconductors demand, while the biomedical manufacturing cluster was boosted by output growth in both the pharmaceuticals and medical technology segments, the ministry said.
On a quarter-on-quarter seasonally-adjusted annualised basis, the manufacturing sector rebounded strongly from the 5.0 5 decline in the third quarter to growth of 39.8% in the fourth quarter.
The construction sector shrank by 2.8% cent year-on-year, extending the 2.2% contraction in the previous quarter. Growth was weighed down primarily by the decline in private sector construction activities. On a quarter-on-quarter basis, the sector expanded at a seasonally-adjusted annualised rate of 0.8 per cent, a reversal from the 12.6 per cent contraction in the preceding quarter. The wholesale & retail trade sector grew by 0.4 per cent year-on-year, slightly faster than the 0.1 per cent growth in the third quarter. Growth was supported by the wholesale trade segment, which expanded on the back of a pick-up in oil and non-oil trade.
The retail trade segment, on the other hand, registered flat growth. On a quarter-on-quarter seasonally-adjusted annualised basis, the sector expanded by 2.2%, up from 1.7% growth in the previous quarter.
Article also available at APMR