Date
19 August 2017
Singapore benefited from a slower than expected manufacturing decline and sustained recovery in advanced economies. Photo: Bloomberg
Singapore benefited from a slower than expected manufacturing decline and sustained recovery in advanced economies. Photo: Bloomberg

Singapore economy unexpectedly expands

Singapore’s economy expanded in the quarter to June, against expectations for a contraction, Bloomberg reported Tuesday.

Gross domestic product rose an annualized 0.1 percent from the previous quarter as manufacturing slowed less than expected amid recovery in advanced countries.

That compares with a July estimate of a 0.8 percent contraction and a 0.3 percent drop in the median forecast 14 economists.

Singapore is likely to benefit from a recovery in global growth which is helping offset higher business costs as the government pursues a plan to slow the inflow of foreign workers, boost productivity and attract new industries, the report said.

The Singapore dollar gained as much as 0.1 percent after the report. It traded little changed at 1.2496 against the US dollar.

The economy expanded 2.4 percent in the second quarter from a year earlier after growing a revised 4.8 percent in the previous three months, the trade ministry said. The median estimate in a Bloomberg survey was for a 2.3 percent gain.

Manufacturing declined 15.2 percent in the second quarter from the previous three months, compared with a July estimate of a 19.4 percent contraction. Services rose 4.5 percent in the same period, while construction gained 0.3 percent.

On Aug. 8, Prime Minister Lee Hsien Loong forecast 2014 growth at 2.5 percent to 3.5 percent. 

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