Economy expanded 1.1% in Q3

The full-year economy is now projected to grow 1% in GDP. 

Singapore’s economy expanded by 1.1% in the third quarter of 2023, ramping up from the 0.5% growth recorded in the previous quarter, according to data from the Ministry of Trade and Industry (MTI).

MTI now expects The Lion City’s GDP growth is projected to grow by 1% for the whole year of 2023, and between 1% to 3% in 2024.

The construction sector grew by 6.3% in the third quarter, as both private and public construction rose. This extends the 7.7% expansion in the previous quarter.

In contrast, the manufacturing sector shrank by 4.6% compared to a year ago, albeit at a slower pace than the 7.6% contraction in Q2. Except for the transport engineering cluster, all clusters within the sector contracted.

The wholesale trade sector expanded 1.2 in Q3, whilst the retail trade sector expanded by 2.2% during the same period. Both motor vehicle and non-motor vehicle sales volumes increased during the quarter.

The transportation & storage sector grew 1.1% in Q3, slower than the 5.7% expansion in Q2. The air transport segment recorded robust growth because of sustained recovery in the total number of air passengers handled at Changi Airport. 

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Land transport and water transport segments also expanded, albeit more modestly. 

The accommodation sector, meanwhile, posted a robust growth of 12.9%, extending the 13% growth in the second quarter. Growth of the sector continued to be bolstered by the strong recovery in international visitor arrivals. 

The food & beverage services sector grew 3.5% in Q3, thanks to an increase in sales volumes at food caterers and cafes, food courts, and other eating places. This outweighed a fall in sales volumes at restaurants and fast-food outlets.

The information & communications, meanwhile, grew at a slower pace of 5.6% in Q3, from 7% in Q2. Within the sector, the IT & information services segment saw strong growth, supported by a rise in demand for data hosting services as well as online marketplaces for goods and travel services, the MTI said.

The finance & insurance sector expanded by 1.5%, recovering from the 1.1% contraction in Q2. 
Growth during the quarter was led by the fund management and activities auxiliary to financial services segments, MTI said.

In contrast, the insurance segment contracted on account of the lacklustre sales of insurance savings products. 

The real estate sector posted a 3.4% growth, slowing from the 12.1% expansion in the second quarter. Growth was supported by the private residential property segment, as well as the commercial and industrial property segments. 

Finally, the professional services sector continued to grow, albeit at a more moderate pace of 0.8% in Q3 from a 1.3% in Q2. The other professional, scientific & technical services, accounting and architectural & engineering, technical testing & analysis segments expanded.