Singapore’s GDP was up by 6.5% y-o-y in the 3Q2021, according to advance estimates by the Ministry of Trade and Industry (MTI) on Oct 14.

The advance estimates are derived largely from data in July and August.

The figure is lower than the 15.2% y-o-y growth logged in 2Q2021, which was due partly to the low base in the 2Q2020. During the period, Singapore’s GDP fell by 13.3% y-o-y due to the circuit breaker measures and a sharp fall in external demand due to the Covid-19 pandemic.

According to the Ministry of Trade and Industry (MTI) Singapore on Oct 14, the Singapore economy expanded by 0.8% q-o-q, reversing from the 1.4% q-o-q contraction in the 2Q2021.

The expansion was led by the construction sector, which expanded by 57.9% y-o-y in the 3Q2021, extending from the 117.5% y-o-y growth in the 2Q2021.

The growth was largely due to the low base effects given the slow resumption of construction activities following the circuit breaker period from April to June in 2020.

In absolute terms, the value-added of the sector remained 25.1% below pre-Covid-19 levels. Activity at construction worksites was weighed down by labour shortages due to border restrictions and the entry of migrant workers.

On a seasonally adjusted q-o-q basis, the sector shrank 0.4% q-o-q.

The information & communications, finance & insurance and professional services sectors collectively expanded by 7.7% y-o-y, extending from the 10.1% y-o-y growth seen in the 2Q2021.

All sectors saw expansions y-o-y during the 3Q2021.

The professional services sector, in particular, expanded on the low base in 3Q2020, caused by the slow resumption in construction activities.

On a seasonally adjusted q-o-q basis, the sectors collectively saw growth of 1.2% q-o-q.

The manufacturing sector expanded by 7.5% y-o-y in the 3Q2021. Growth during the quarter was supported by output expansions in all clusters except the chemicals cluster.

The electronics and precision engineering clusters in particular, registered strong growth amid the sustained global demand for semiconductors and semiconductor equipment.

On a seasonally-adjusted q-o-q basis, the value-added of the manufacturing sector remained unchanged.

Meanwhile, the wholesale & retail trade and transportation & service sectors grew by 5.0% y-o-y, as all sectors expanded during the 3Q2021.

The wholesale trade sector, especially, saw growth on the back of a pickup in external demand.

Growth in the transportation & storage sector was partly due to the low base effects. In 2020, strict border restrictions had weighed heavily on the air transport segments in same quarter that year.

The value-added of the group, on the whole, remained 7.3% below pre-pandemic levels.

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On a seasonally adjusted q-o-q basis, the sectors collectively contracted by 1.3% q-o-q.

Finally, accommodation & food services, real estate, administrative & support services and other services sectors grew 3.1% y-o-y, moderating from the 14.5% y-o-y expansion in 2Q2021.

Within the group, the real estate and other services sectors expanded.

Meanwhile, the accommodation & food services, as well as administrative & support services contracted due to the ongoing travel restrictions and tighter restrictions domestically.

The value-added of the sectors, on the whole, remained 11.3% below pre-Covid-19 levels.

On a seasonally adjusted q-o-q basis, the sectors expanded by 0.8% q-o-q.

MTI says it will release the preliminary GDP estimates for the 3Q2021 in November.

Photo: Bloomberg