Singapore's GDP Estimate Shows Moderate Growth In Q2 2014

By Tengku Noor Shamsiah Tengku Abdullah SINGAPORE, July 14 (Bernama) -- The Singapore economy grew 2.1 per cent, year-on-year, in the second quarter of 2014, slower than the 4.7 per cent growth recorded in the previous quarter, due to a slowdown in the manufacturing sector. The Ministry of Trade and Industry said on a quarter-on-quarter seasonally-adjusted annualised basis, the economy contracted 0.8 per cent, a reversal from the 1.6 per cent growth registered in the preceding quarter. On a year-on-year basis, the manufacturing sector grew 0.2 per cent in the second quarter, moderating from the 9.9 per cent expansion in the previous quarter. The deceleration in growth was largely due to a contraction in electronics output and slower growth in transport engineering output. On a quarter-on-quarter basis, the sector contracted at an annualised rate of 19.4 per cent, in contrast to the 12.2 per cent expansion recorded in the preceding quarter. The construction sector grew 5.0 per cent on a year-on-year basis, compared to 6.4 per cent registered in the preceding quarter. The lower rate of growth was due to a slowdown in private sector construction activities. On a quarter- on-quarter basis, the ministry said the sector expanded at an annualised rate of 2.6 per cent, an improvement from a 0.5 per cent contraction, recorded in the previous quarter. The services producing industries grew by 2.8 per cent, on a year-on-year basis, following the 3.9 per cent growth in the previous quarter. The moderation in growth was largely due to the slower expansion in the wholesale & retail trade and transportation & storage sectors. On a quarter-on-quarter basis, the services producing industries grew at an annualised rate of 5.2 per cent, a reversal from the 1.4 per cent contraction, registered in the preceding quarter. MTI will release the preliminary GDP estimates for the second quarter in August, including performances by sectors, sources of growth, inflation, employment and productivity, in its Economic Survey of Singapore. -- BERNAMA