Singapore economic growth sinks to decade low of 0.1pc

Friday, July 12, 2019

Singapore’s economy grew by a mere 0.1 percent year-on-year in the second quarter, the lowest in a decade, according to official estimates.

That widely missed economists' forecasts of 1.1 per cent and was the lowest since the second quarter of 2009 when gross domestic product (GDP) contracted by 1.2 per cent, according to Bloomberg data, state broadbcaster Channel News Asia reports.

The flash estimate, which is computed largely from data gathered in the first two months of the quarter, was also significantly weaker than the revised 1.1 per cent growth in the first quarter. 

On a quarter-on-quarter seasonally adjusted annualized basis, Singapore’s GDP contracted by 3.4 per cent, way below the median forecast of 0.1 per cent in a Reuters poll and a reversal from the 3.8 per cent growth in the previous quarter. 

This marked the worst quarter-on-quarter performance since the third quarter of 2012, according to OCBC’s head of treasury research and strategy Selena Ling.

Manufacturing, which accounts for about one-fifth of the economy, was the main drag, said economists.

The sector extended a 0.4 per cent decline in the first quarter to contract by a much wider 3.8 per cent between April and June on a year-on-year basis. Output declines in the electronics and precision engineering clusters more than offset expansions in the rest of the manufacturing clusters, said MTI.