By BERNAMA
The Ministry of Trade and Industry has m
aintained Singapore’s Gross Domestic Product growth forecast for this year at between 1% and 3% although first quarter growth was only 0.2% against 1.5% in the preceding quarter.
On a quarter-on-quarter seasonally-adjusted annualised basis, the economy grew slower by 1.8% compared with the 3.3% growth recorded in the previous quarter.
The pull-back in the quarter-on-quarter growth momentum was mainly due to the decline in externally-oriented sectors such as manufacturing and wholesale trade, the ministry said in a statement.
On a quarter-on-quarter basis, it said the manufacturing sector declined an annualised rate of 12.3%, reversing the 3.1% gained in the previous quarter.
On a year-on-year basis, the ministry said the manufacturing sector contracted 6.8% compared with a decline of 1.1% in the preceding quarter.
The construction sector expanded 7.3%, on a year-on-year basis, following the 5.8% growth registered in the preceding quarter.
The wholesale and retail trade sector contracted 1.1% on a year-on-year basis, compared with the decline of 1.5% in the previous quarter.
Similarly, it added the transportation and storage sector declined 0.5% on a year-on-year basis and 8.4% on a quarter-on-quarter seasonally-adjusted annualised basis.
Growth in the finance and insurance sector accelerated to 10.5% on a year-on-year basis from 3.3% in the preceding quarter.
On economic outlook, the ministry said although Singapore’s economic growth eased in the first
Externally-oriented sectors are expected to pick up in tandem with the gradual recovery in external demand while construction and key services sectors such as finance and insurance and, business services would continue to provide support to growth.
Nonetheless, risks to the global growth outlook remain.
Fiscal uncertainties in the United States remain with the failure of Congress to raise the debt ceiling while the Eurozone was prone to a potential flare-up of the sovereign debt crisis.
Other uncertainties include the risk of an escalation in regional geopolitical tensions and a possible global outbreak of respiratory viruses.
— BERNAMA
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