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Singapore
AsiaSoutheast Asia

Singapore reports lowest GDP growth in two years as trade ministry warns manufacturers may be vulnerable

  • The economy grew 3.2 per cent for all of 2018, the ministry said, compared with its 3.3 per cent advance estimate

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Singapore’s economy grew at its slowest pace in more than two years in the fourth quarter. Photo: Xinhua
Reuters
Singapore’s economy grew at its slowest pace in more than two years in the fourth quarter, data showed on Friday, and the city state’s trade ministry warned that manufacturing is likely to face significant moderation this year.
Weakening growth momentum for Singapore’s open economy – a hi-tech manufacturing base and transportation hub – underscores the risks to Asia’s export economies from a slowdown in China and Beijing’s trade war with Washington.

Singapore’s growth pace is expected to slow in 2019 as manufacturing “is likely to see a significant moderation,” trade ministry official Loh Khum Yean said, adding that the important electronics and semiconductor sector were particularly vulnerable.

Loh said services – which account for roughly 70 per cent of the economy – are also likely to ease.

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From a year earlier, gross domestic product grew 1.9 per cent in the fourth quarter, less than the 2.2 per cent advance estimate from the Ministry of Trade and Industry (MTI). That was the slowest on-year pace since the third quarter of 2016, when it grew 1.2 per cent.

In October-December, the economy grew 1.4 per cent from the previous three months on an annualised and seasonally adjusted basis, lower than the ministry’s initial estimate, made on January 2, of 1.6 per cent.

Singapore is still a heavily export reliant economy
Barnabas Gan, UOB bank

The economy grew 3.2 per cent for all of 2018, the ministry said, compared with its 3.3 per cent advance estimate.

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