GDP expanded 0.7% in 2019

The slower growth was partly driven by the manufacturing sector contracting 1.4%.

For the whole 2019, the Singapore economy expanded by 0.7%, slower than the 3.4% growth recorded in 2018, the Ministry of Trade and Industry (MTI) said in a press release.

The manufacturing sector contracted by 1.4% over the same period, a reversal from the 7% growth in 2018, weighed down by output declines in the electronics, chemicals, precision engineering and transport engineering clusters.

On the other hand, the construction sector and the services producing sector expanded by 2.8% and 1.1%, respectively. This was supported by both public sector and private construction works; whilst the latter was attributed to the finance & insurance, other services and business services sectors, which expanded by 4.1%, 2.6% and 1.4% respectively.

On a quarterly basis, the economy expanded 1% YoY in Q4, faster than the 0.7% growth recorded in the previous quarter, said MTI. The economy expanded at a slower pace of 0.6% compared to the 2.2% growth in the preceding quarter.

The manufacturing sector shrank faster by 2.3% in Q4, extending the 0.7% YoY contraction in Q3. The sector’s performance was weighed down by output declines in the electronics, chemicals, transport engineering and general manufacturing clusters, which more than offset output expansions in the biomedical manufacturing and precision engineering clusters.

The wholesale & retail trade sector also contracted by 1.9% YoY in Q4, moderating from the 3.5% decline in the previous quarter. The wholesale trade segment shrank due to contractions in the machinery, equipment & supplies and fuels & chemicals sub-segments; whilst the retail trade segment also shrank due to a decline in both motor vehicular and non-motor vehicular sales volumes.

In contrast, the construction sector grew by 4.3% YoY to accelerate from the 3.1% YoY expansion in the third quarter, supported by both public sector and private sector construction works.

The transportation & storage sector also grew by 0.8% YoY during the period, compared to the flat growth recorded in Q3. Growth was largely driven by the air transport segment, which saw an increase in air passengers handled.

Meanwhile, the accommodation & food services sector inched up 2.5% YoY, faster than the 1.9% achieved in Q3 2019. Both segments expanded, with the accommodation services sector growing in tandem with an increase in international visitor arrivals, whilst the food services sector expanded on account of higher sales volumes at restaurants, fast food outlets and other eating places.

Information & communications sector went up 4.5% YoY, slightly higher than the 4.4% YoY recorded in Q3. The sector’s growth was primarily driven by the IT & information services segment, which continued to benefit from enterprise demand for IT solutions.

Finance & insurance sector also rose by 4% YoY to extend the 4.1% in Q3, on the back of activities auxiliary to financial services, which in turn was boosted by a strong expansion in credit card network activities.

Growth in the business services sector picked up to 1.7% YoY, from the 1.1% registered in Q3, supported by expansions in the professional services and real estate segments.

The other services industries also expanded by 3.3% YoY, higher than the 2.4% growth in Q3. Growth was mainly driven by the education, health & social services segment.