Economy undergoing 'structural' change, not slowdown: analyst

eToro’s Zavier Wong says services strength highlights the economy’s pivot from trade reliance.

Singapore’s third-quarter GDP suggests an economy undergoing structural change rather than a cyclical slowdown, analysts said, as services continued to offset weakness in trade and manufacturing.

The economy grew 2.9% year-on-year (YoY) in the third quarter, easing from 4.5% in the previous three months, according to advance estimates from the Ministry of Trade and Industry.

The figures show Singapore’s transition from goods-led expansion to services-led growth, said Zavier Wong, market analyst at eToro.  

Manufacturing was flat and construction softened as earlier export-driven momentum faded, while services grew 3.5%, led by finance, information technology, and professional sectors.

Wong said Singapore’s resilience lies in its ability to move up the value chain and capture new service-led growth.

He added that the Monetary Authority of Singapore is likely to stay patient on policy settings after keeping its stance unchanged earlier in the day, as moderating growth and easing inflation give room to prioritise stability.

Analysts said Singapore’s growth trajectory now hinges more on service competitiveness than manufacturing cycles, as shifting global trade dynamics reshape its economic base.