The Singapore economy grew by 0.2 per cent on a year-on-year basis in the first quarter of 2021, a turnaround from the 2.4 per cent contraction in the previous quarter.
On a quarter-on-quarter seasonally-adjusted basis, the economy expanded by 2.0 per cent, extending the 3.8 per cent expansion in the preceding quarter, according to advance estimates by the republic’s Ministry of Trade and Industry (MTI) Wednesday.
The advance gross domestic Product (GDP) estimates for the first quarter of 2021 were computed largely from data in the first two months of the quarter.
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.
On sectoral performance, the MTI said the manufacturing sector grew by 7.5 per cent on a year-on-year basis in the first quarter, following the 10.3 per cent expansion registered in the previous quarter.
“Growth of the sector was supported by output expansions in the electronics, precision engineering, chemicals and biomedical manufacturing clusters, which outweighed output declines in the transport engineering and general manufacturing clusters,” it said.
The construction sector shrank by 20.2 per cent on a year-on-year basis in the first quarter, improving from the 27.4 per cent contraction in the preceding quarter.
“The improved performance came on the back of a pickup in public and private sector construction activities in the first quarter compared to the previous quarter,” said the ministry.
Among the services sectors, the wholesale & retail trade and transportation & storage sectors shrank by 4.1 per cent in the first quarter, moderating from the 6.4 per cent contraction in the previous quarter.
The contraction recorded for this group of sectors was due to continued weakness in the transportation & storage sector, which was in turn primarily caused by the impact of the ongoing COVID-19 pandemic on the air transport, water transport and land transport segments, said the MTI.
By contrast, the wholesale trade and retail trade sectors expanded, it said.
Meanwhile, the information & communications, finance & insurance, and professional services sectors collectively grew by 3.7 per cent in the first quarter, faster than the 1.4 per cent expansion in the preceding quarter.
“Growth was supported by healthy expansions in the information & communications and finance & insurance sectors, even as the professional services sector contracted,” said the ministry.
The remaining group of services sectors such as accommodation & food services, real estate, administrative & support services, and other services industries, shrank by 3.9 per cent, an improvement from the 9.9 per cent contraction in the previous quarter.
The MTI will release the preliminary GDP estimates for the first quarter of 2021, including performance by sectors, sources of growth, inflation, employment, and productivity, in its Economic Survey of Singapore in May 2021.
Singapore’s economy contracted by 5.4 per cent in 2020.
Source: NAM News Network