Singapore’s economy contracted in April and May this year due to a sharp drop in manufacturing activity, among other sectors.
According to the latest advance estimates by Singapore’s Ministry of Trade and Industry, the Singapore economy grew by 2.1% on a year-on-year basis in the second quarter of 2014.
On a quarter-on-quarter seasonally-adjusted and annualised basis, this percentage was a contraction of 0.8% and a reversal from the 1.6% growth in the preceding quarter.
The report included the hit in growth was partly due to the slow growth in the manufacturing sector.
The sector grew by 0.2% in the second quarter, moderating from the 9.9% expansion in the previous quarter.
“The deceleration in growth was largely due to a contraction in electronics output and slower growth in transport engineering output,” the report stated.
“On a quarter-on-quarter basis, the sector contracted at an annualised rate of 19.4%, in contrast to the 12.2% expansion in the preceding quarter.”
It added the construction sector grew by 5.0% on a year-on-year basis, compared to a 6.4% growth in the preceding quarter. A slowdown in private sector construction activities was highlighted as the main reason for the lower rate growth in the sector.
Also impacting the overall GDP this quarter was the slowdown in growth rates for the construction sector, which grew by 5.0% on a year-on-year basis, as opposed to 6.4% in the previous quarter.
“The moderation in growth was largely due to slower expansion in the wholesale and retail trade and transportation and storage sectors,” the report stated.