Singapore’s economy expands on back of manufacturing sector rebound
- Compared with a year ago, the city state’s economy grew 2.9 per cent in the second quarter, beating expectations
The better than expected figure and an upwards revision to first quarter data to 3.0 per cent led economists to upgrade their gross domestic product (GDP) forecasts for the year. Singapore’s trade-dependent economy often functions as a bellwether for the economic health of Asia that belies its size.
Economists surveyed by Reuters had forecast annual GDP growth would come in at 2.7 per cent in the April to June period.
Maybank’s Chua Hak Bin revised his forecast to around 2.8 per cent-3 per cent for the full year, up from 2.4 per cent. OCBC chief economist Selena Ling changed hers to above 2.5 per cent from 2.3 per cent.
“The manufacturing recovery is gaining traction a bit earlier than expected in the second quarter rather than the second half of 2024,” Ling said.
On a quarter-on-quarter seasonally adjusted basis, GDP expanded 0.4 per cent in the second quarter, the data from the Ministry of Trade and Industry showed.