Is this a sign that things are picking up for the Singapore economy?
The Ministry of Trade and Industry (MTI) said on Thursday (Nov 23) that the economy is expected to grow by 3 to 3.5% in 2017, up from an initial range of 2 to 3%, with the final figure expected to be in the upper end of the range previously.
In its Q3 report, MTI said that the Singapore economy grew by 5.2% on a year-on-year basis in the quarter, faster than the 2.9% growth in the previous quarter, largely due to the manufacturing sector which grew 18.4% year-on-year.
The latest figure is the best showing since the economy grew 5.4% in Q4 of 2013 and is higher than October’s advance gross domestic product (GDP) estimates of 4.6%.
Next year, the Singapore economy is expected to grow by 1.5 to 3.5% and moderate but “remain firm” as compared to 2017.
The final figure likely to “come in around the middle of the forecast range”, with the manufacturing sector expected to continue to expand and provide support to overall GDP growth.
An MTI statement on 2018’s outlook said: “In particular, the electronics and precision engineering clusters are expected to see sustained expansions on the back of healthy demand conditions in the global semiconductor and semiconductor equipment markets.