SINGAPORE – The Singaporean economy grew by 0.2% on a year-on-year (y-o-y) basis in the first quarter of 2021, a turnaround from the 2.4% contraction in the previous quarter.
On a quarter-on-quarter seasonally adjusted basis, the economy expanded 2.0%, extending the 3.8% expansion in the preceding quarter, according to advance estimates by the Trade and Industry Ministry today.
The advance gross domestic product estimates for Q1 were computed largely from data in the first two months of the quarter.
They are intended as an early indication of GDP growth in the quarter, and subject to revision when more comprehensive data becomes available.
On sectoral performance, the ministry said the manufacturing sector grew 7.5% on a y-o-y basis in Q1, following the 10.3% expansion registered in the previous quarter.
“Growth of the sector was supported by output expansions in the electronics, precision engineering, chemicals and biomedical manufacturing clusters, which outweighed output declines in the transport engineering and general manufacturing clusters.”
The construction sector shrank 20.2% on a y-o-y basis in Q1, improving from the 27.4% contraction in the preceding quarter.
“The improved performance came on the back of a pick-up in public and private sector construction activities in Q1 compared with the previous quarter,” said the ministry.
Among the services sectors, wholesale and retail trade, as well as transportation and storage, shrank by 4.1% in Q1, moderating from the 6.4% contraction in the previous quarter.
The contraction recorded for this group of sectors was due to continued weakness in transportation and storage, which was primarily caused by the impact of the Covid-19 pandemic on the air, water and land transport segments.
In contrast, said the ministry, wholesale and retail trade expanded.
Meanwhile, the information and communications, finance and insurance, and professional services sectors collectively grew 3.7% in Q1, faster than the 1.4% expansion in the preceding quarter.
“Growth was supported by healthy expansions in the information and communications, and finance and insurance sectors, even as the professional services sector contracted,” said the ministry.
The remaining group of services sectors, such as accommodation and food services, real estate, and administrative and support services, shrank 3.9%, an improvement from the 9.9% contraction in the previous quarter.
The ministry will release the preliminary GDP estimates for Q1, including performance by sector, sources of growth, inflation, employment and productivity, in its Economic Survey of Singapore next month.
The nation’s economy contracted 5.4% last year. – Bernama, April 14, 2021
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