Singapore revised Q3 growth and 2016 forecast

According to media reports, Singapore revised its 2016 growth forecast to 1-1.5% while it forecasts a growth rate of 1- 3% for 2017.

According to data from the Ministry of Trade and Industry (MTI), Singapore’s growth in Q3 of 2016 is now at 1.1% on a yearly basis. MTI had previously announced this rate at 0.6%. Although it was revised upwards, the growth rate is still below the 2% recorded in Q2, said MTI.

According to the reports, the economy shrank by 2% on a quarter-on-quarter seasonally adjusted annualized basis, when compared to the 4.1% contraction that was previously estimated. Again, despite this upward revision, the economic growth was still worse than the 0.1% of Q2.

MTI estimates Singapore’s economy to grow by 1%-1.5% by the end of the year, which will be weaker than the 2% of 2015.

The data also showed that the service sector expanded by 0.2% year on year while it contracted by 0.1% on a quarterly basis, when compared to the 0.7% decrease in the previous three months.

The wholesale and retail sector contracted by 1.5% year on year. It decreased 2.7% on a quarter-on-quarter seasonally adjusted annualized basis after the 0.1% growth in Q2, data reveals.

The manufacturing sector reportedly grew by 1.3% on a yearly basis. However, the sector shrank 9.1% on a quarterly basis when compared to the 2.1% growth in Q2.