Singapore’s Economy Grew Faster in 1Q Than Previously Estimated
Singapore’s economy grew faster than previously estimated in the first quarter, as an expansion in manufacturing, wholesale and retail trade and accommodation outweighed contractions in construction and food and beverage services.
The country’s gross domestic product expanded 1.3% in the January-to-March period from a year earlier, according to data released by the Ministry of Trade and Industry on Tuesday. That compared with the advance estimate of a 0.2% expansion in the first quarter.
Manufacturing expanded 10.7% in the first quarter, slightly faster than 10.3% growth in the prior quarter. Wholesale trade grew 3.5% in the first quarter, quicker than the 1.8% growth in the previous quarter, while retail trade expanded 1.4%, a reversal from the 4.7% contraction in the preceding quarter.
The accommodation industry grew 19.0% in the first quarter, a turnaround from a 19.7% contraction in the fourth quarter of 2020. The information and communications industries expanded 6.4% in the first quarter, faster than 2.6% growth in the prior quarter.
Construction contracted 22.7% in the first quarter, an improvement from a 27.4% contraction in the previous quarter. Food and beverage services shrank 9.4% in the first quarter, an improvement from a 19.0% contraction in the prior quarter.
Quarter on quarter, GDP grew 3.1% on a seasonally adjusted basis. That compared with the advance estimate of a 2.0% expansion.
While it is possible that the Singapore economy will outperform the 4.0% to 6.0% growth forecast for 2021, there are also significant downside risks, of which the most important is the trajectory of the Covid-19 pandemic, the MTI said.
Source: Dow Jones