SINGAPORE – The Singapore economy contracted by 7.0% on a year-on-year basis in the third quarter (Q3), an improvement from the 13.3% contraction in Q2, as reported on Bernama.
It expanded by 7.9% on a quarter-on-quarter seasonally-adjusted basis, rebounding from the 13.2% contraction in the preceding quarter.
This was based on advance estimates released by the republic’s Ministry of Trade and Industry (MTI) here today.
The advance gross domestic product (GDP) estimates for Q3 of 2020 are computed largely from data in the first two months of the quarter — July and August 2020.
They are intended as an early indication of the GDP growth in the quarter and are subject to revision when more comprehensive data become available.
According to MTI, the improved performance of Singapore’s economy in the third quarter came on the back of the phased re-opening of the economy following the Circuit Breaker that was implemented from April 1 until June 1, 2020.
As for a sectoral performance, the ministry said the manufacturing sector grew by 2.0% on a year-on-year basis in Q3, a reversal from the 0.8% contraction in the previous quarter.
Growth of the sector was supported by output expansions in the electronics and precision engineering clusters, which were, in turn, driven by robust global demand for semiconductors and semiconductor manufacturing equipment, it said.
The construction sector, however, shrank by 44.7% on a year-on-year basis in Q3, extending the 59.9% decline in the previous quarter.
Construction output in Q3 remained weak on account of the slow resumption of construction activities due to the need for construction firms to implement safe management measures for a safe restart, said the ministry.
The services producing industries, meanwhile, contracted by 8.0% on a year-on-year basis in Q3, an improvement from the 13.6% decline in the previous quarter.
The ministry noted that within services, aviation- and tourism-related sectors like air transport and accommodation continued to see significant contractions, as global travel restrictions and sluggish travel demand brought air travel and visitor arrivals to a near complete standstill.
Nonetheless, the finance and insurance, and information and communications sectors recorded steady growth during the quarter.
MTI will release the preliminary GDP estimates for Q3, including performance by sectors, sources of growth, inflation, employment and productivity, in its Economic Survey of Singapore in November 2020.