Singapore Q4 GDP Grows 2.1% On Quarter

Singapore's gross domestic product climbed a seasonally adjusted 2.1 percent on quarter in the fourth quarter of 2020, the Ministry of Trade and Industry said in Monday's advance estimate.

That was roughly in line with expectations following the upwardly revised 9.5 percent spike in the previous three months (originally 9.2 percent).

On a yearly basis, gross domestic product was down 3.8 percent - exceeding forecasts for a decline of 4.5 percent following the upwardly revised 5.6 percent drop in the three months prior (originally -5.8 percent).

For all of 2020, GDP was down 5.8 percent both on quarter and on year.

The manufacturing sector expanded 9.5 percent on year basis in the fourth quarter, extending the 10.8 percent growth in the previous quarter. Growth of the sector was supported primarily by output expansions in the electronics, biomedical manufacturing and precision engineering clusters, which outweighed output declines in the transport engineering and general manufacturing clusters.

On a quarterly basis, the manufacturing sector contracted by 2.6 percent, a pullback from the 12.6 percent expansion in the third quarter.

The construction sector shrank by 28.5 percent on year in the fourth quarter, improving from the 46.2 percent contraction in the preceding quarter. The improved performance of the sector came on the back of the resumption of more construction activities in the fourth quarter as compared to the previous quarter.

On a quarterly basis, the construction sector grew by 34.4 percent, extending the 39.0 percent growth in the third quarter.

Among the services sectors, the wholesale and retail trade and transportation and storage sectors shrank by 11.0 percent in the fourth quarter, moderating slightly from the 11.9 percent drop in the previous quarter. The performance of this group of sectors was primarily weighed down by the trade-related segments such as wholesale trade and water transport, which contracted due to sluggish external demand as major economies around the world continued to grapple with the COVID-19 pandemic, as well as the air transport segment, which shrank on the back of ongoing global travel restrictions and weak travel demand.

On a quarterly basis, the sectors in the group expanded by 1.2 percent, softening from the 4.3 percent growth in the third quarter.

The information and communications, finance and insurance and professional services sectors collectively added 0.2 percent, a reversal from the 0.2 percent contraction in the third quarter. Growth was supported by steady expansions in the information and communications and finance and insurance sectors, even as the professional services sector contracted due to sluggish economic activity in the region and domestically.

On a quarterly basis, the sectors in the group expanded 2.5 percent, extending the 2.9 percent growth in the third quarter.

Accommodation and food services, real estate, administrative and support services and other services industries contracted by 9.9 percent, an improvement from the 13.5 percent contraction in the third quarter. Within the group, the accommodation segment continued to shrink as a result of weak tourism demand, while the performance of the food services segment and other services industries were weighed down by constraints arising from the implementation of safe management measures.

On a quarterly basis, the sectors in the group grew by 4.5 percent, slowing from 11.7 percent growth in the third quarter.

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