Singapore’s economy displayed notable resilience and growth in the third quarter of 2023, as indicated by advance estimates released by the Ministry of Trade and Industry (MTI). The economy expanded by 0.7 percent year-on-year, showcasing improvement compared to the 0.5 percent growth witnessed in the previous quarter. Additionally, a robust quarter-on-quarter seasonally-adjusted growth rate of 1 percent was recorded, surpassing the 0.1 percent growth in the preceding quarter.
Manufacturing Sector Shows Resilience
Despite challenges faced in the global landscape, the manufacturing sector demonstrated resilience, contracting by only 5 percent year-on-year in Q3, compared to a 7.7 percent contraction in the previous quarter. The sector’s quarter-on-quarter seasonally-adjusted growth rate of 0.2 percent marked a turnaround from the 1.5 percent contraction in the second quarter. Notably, the transport engineering cluster witnessed growth.
Construction Sector’s Steady Growth
The construction sector continued its growth trajectory, expanding by 6 percent year-on-year in Q3, following a 7.7 percent growth in the second quarter. This expansion was driven by increased output in both public and private construction. On a quarter-on-quarter seasonally-adjusted basis, the sector exhibited a growth rate of 0.6 percent, although at a slightly slower pace compared to the 2.7 percent growth in the second quarter.
Services Sectors Varied Performance
Among the services sectors, the wholesale and retail trade, along with transportation and storage sectors, collectively grew by 0.6 percent year-on-year in Q3, a slower pace compared to the 2.2 percent growth in the previous quarter. Notably, the fuels and chemicals segment and air transport contributed to the sector’s growth. However, on a quarter-on-quarter seasonally-adjusted basis, these sectors contracted by 0.1 percent, reversing the 3 percent expansion in the previous quarter.
The information and communications, finance and insurance, as well as professional services sectors expanded by 1.5 percent year-on-year in the third quarter, building upon the 1.2 percent growth in the previous quarter. However, the finance and insurance sector contracted due to underperformance in banking and insurance segments. On a quarter-on-quarter seasonally-adjusted basis, these sectors collectively expanded by 0.7 percent, moderating from the 1.1 percent growth in the second quarter.
Diverse Growth in Remaining Service Sectors
The group of services sectors, including accommodation and food services, real estate, administrative and support services, and other services, exhibited a year-on-year growth rate of 4.7 percent in Q3, although slower than the 6.1 percent growth in the previous quarter. All sectors within this group experienced growth, with the accommodation sector particularly benefitting from the recovery in international visitor arrivals. On a quarter-on-quarter seasonally-adjusted basis, these sectors collectively expanded by 1.4 percent in the third quarter, showing acceleration from the 0.4 percent growth in the preceding quarter.
These advance estimates provide an early glimpse into Singapore’s economic performance for the third quarter, primarily based on data from July and August. However, it is important to recognize that these figures are subject to potential revision as more comprehensive data becomes available. The sustained growth and resilience demonstrated across various sectors offer encouraging signs for Singapore’s economy as it navigates a dynamic global landscape.
Also learn about Singapore: A Key Player in the ASEAN Digital Economy.
