Singapore revises growth upwards, but ‘global trade tensions’ could threaten recovery

Singapore’s GDP grew by 2.1 per cent in the third quarter, while full-year growth is forecast at between 0.5 and 1 per cent

But analysts say the US-China trade war could hurt the Singapore economy, although it will gain from the Hong Kong protests

Reading Time:3 minutes

Buildings in Singapore’s central business district. The Ministry of Trade and Industry revised GDP growth upwards and projected the economy will expand by 0.5 to 2.5 per cent next year. Photo: SCMP

Published: 4:33pm, 21 Nov 2019Updated: 10:53pm, 21 Nov 2019

An upward revision of Singapore’s third-quarter growth on Thursday provided some signs of optimism for its bellwether economy, but analysts warn that regional and global uncertainties could threaten economic recovery.

Singapore’s gross domestic product grew by 2.1 per cent in the July to September period compared to the second quarter of this year, after adjustments for seasonal swings, according to the Ministry of Trade and Industry (MTI).

This expansion was up from the 0.6 per cent third quarter estimate reported from preliminary data in October, which meant the trade-reliant city state had comfortably skirted a technical recession.

Thursday’s results came on the back of better-than-expected performances from the manufacturing and construction sectors.

Container cranes bearing the logo of the Port of Singapore Authority are seen in Singapore. Photo: EPA-EFE

The manufacturing sector recorded growth of 7.6 per cent, a turnaround from the 4.2 per cent decrease in the second quarter, while contraction in the construction industry eased from 5.5 per cent last quarter to 0.1 per cent.