SINGAPORE – The Singapore economy grew 14.3% year-on-year (y-o-y) in the second quarter (Q2) of 2021, extending the 1.3% growth in the previous quarter, reported the Trade and Industry Ministry (MTI) today.
In its advance estimates, MTI said the strong growth is largely due to the low base in Q2 2020, when gross domestic product fell 13.3% because of the Covid-19 circuit breaker implemented from April 7 to June 1.
The GDP estimates for Q2 were computed largely from data in the first two months of the quarter, namely April and May.
In absolute terms, the ministry said GDP in Q2 remains 0.9% below the pre-pandemic level in the same quarter in 2019.
On a quarter-on-quarter seasonally adjusted basis, the economy contracted 2.0%, a reversal from the 3.1% growth in Q1.
On sectoral performance, MTI said the manufacturing sector grew 18.5% on a y-o-y basis in the quarter under review, extending the 11.3% growth in the previous quarter.
“Growth was supported by output expansions in all clusters except for the biomedical manufacturing cluster.”
The construction sector expanded 98.8% y-o-y, a turnaround from the 23.1% contraction in Q1.
“The sharp upturn was due to low base effects as circuit-breaker measures resulted in a stoppage of most construction activities in Q2 2020,” said the ministry.
In absolute terms, it said, the value-added of the sector remains 31.6% below the level recorded in Q2 2019.
Among the services sectors, the wholesale and retail trade, and transportation and storage sectors grew 9.3% in Q2, reversing the 1.7% contraction in Q1.
The information and communications, finance and insurance, and professional services sectors collectively expanded 7.8%, extending the 3.2% growth in the preceding quarter.
The remaining group of services sectors, such as accommodation and food services, real estate, and administrative and support services, expanded 13.4%, a turnaround from the 3.8% contraction in Q1.
MTI will release its preliminary GDP estimates for Q2, including performance by sector, sources of growth, inflation, employment and productivity, in its Economic Survey of Singapore next month. – Bernama, July 14, 2021
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