- The Straits Times
Following Prime Minister Lee Hsien Loong’s announcement during the 2018 National Day Message that Singapore’s economy will continue to grow by about “3 to 3.5%”, the Ministry of Trade and Industry (MTI) announced on Monday (August 13) that the Gross Domestic Product (GDP) is predicted to grow by “2.5 to 3.5 per cent”.
This is in line with what the MTI said in May, where it also announced the same growth number expected for the rest of the year.
Unfortunately, the economy grew 3.9% year on year in the second quarter, which is lower than the 4.5% increase it experienced in the first quarter.
Due to the state of the global economy, the MTI said growth is expected to slow in the second half of the year.
It said: “Since May 2018, the growth outlook of some of the key advanced economies such as the Eurozone and Japan has weakened slightly… growth in several of Singapore’s key final demand markets is expected to moderate in the second half (of the year).”
The manufacturing sector has continued to grow rapidly, increasing by another 10.2% after the 10.8% increase recorded in the first quarter.
The wholesale and retail trade sector, transportation and storage sector, accommodation and food services, information and communications sector, finance and insurance, business services sector and the “other services” sector are all sectors that also grew in the second quarter of this year.
The only sector to experience a decline was the construction sector, which “contracted by 4.6% year-on-year, easing from the 5.2% decline in the previous quarter”, the MTI added.