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Singapore's GDP up 2.9pc in Q2, manufacturing props up economy in H2
SINGAPORE's gross domestic product rose a seasonally-adjusted and annualised 2.2 per cent in the second quarter from the previous three months, according to the Ministry of Trade and Industry, revising its earlier estimate of 0.4 per cent.
Compared to the same period last year, GDP rose 2.9 per cent in the second quarter, pushed up by a recovery in global trade which helped to buoy manufacturing
The ministry has narrowed its growth forecast range for 2017 to two to three per cent from one to three per cent, reported Bloomberg.
As one of Asia's most trade-dependent countries, Singapore has benefited from a recovery in global trade since late last year, led by strong Chinese demand for electronics and other manufactured goods.
While export-led industries are expanding strongly, there are mounting risks. Consumer-focused industries such as retail remain weak in the face of job cuts and rising debt. There are also doubts over whether China can sustain its growth as the government tries to curb a credit bubble.
The Trade Ministry cited three main risks to the global economy - trade protectionist threats, faster-than-expected interest-rate increases in the US and a pullback in credit demand in China - but said the potential for these to have a significant impact on growth has eased compared to three months ago.
"As long as regional trade and economic momentum remains steady and if the labour market continues to stabilise, it should bode quite well for private consumption and consumption of services," said Oversea-Chinese Banking Corp analyst Selena Ling.
"It tells you how far the pendulum has swung from last year to now, people were worried about Trump, Brexit, the French elections, but the threats seem to have tapered off a bit."
The services industry, which accounts for two-thirds of the economy, grew an annualized 3.3 per cent in the second quarter from the previous three months
Manufacturing rose an annualised 2.9 per cent; the ministry said the sector will continue to provide support to the Singapore economy in the second half, backed by strong performance in the electronics and precision engineering clusters
Compared to the same period last year, GDP rose 2.9 per cent in the second quarter, pushed up by a recovery in global trade which helped to buoy manufacturing
The ministry has narrowed its growth forecast range for 2017 to two to three per cent from one to three per cent, reported Bloomberg.
As one of Asia's most trade-dependent countries, Singapore has benefited from a recovery in global trade since late last year, led by strong Chinese demand for electronics and other manufactured goods.
While export-led industries are expanding strongly, there are mounting risks. Consumer-focused industries such as retail remain weak in the face of job cuts and rising debt. There are also doubts over whether China can sustain its growth as the government tries to curb a credit bubble.
The Trade Ministry cited three main risks to the global economy - trade protectionist threats, faster-than-expected interest-rate increases in the US and a pullback in credit demand in China - but said the potential for these to have a significant impact on growth has eased compared to three months ago.
"As long as regional trade and economic momentum remains steady and if the labour market continues to stabilise, it should bode quite well for private consumption and consumption of services," said Oversea-Chinese Banking Corp analyst Selena Ling.
"It tells you how far the pendulum has swung from last year to now, people were worried about Trump, Brexit, the French elections, but the threats seem to have tapered off a bit."
The services industry, which accounts for two-thirds of the economy, grew an annualized 3.3 per cent in the second quarter from the previous three months
Manufacturing rose an annualised 2.9 per cent; the ministry said the sector will continue to provide support to the Singapore economy in the second half, backed by strong performance in the electronics and precision engineering clusters
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