We’re right on track.
The Ministry of Trade and Industry has just released the latest estimates of our economy’s performance – and it exceeded expectations. A Reuters poll forecasted a 2.4% growth and we achieved a 0.1% surplus. On a seasonally adjusted annualised basis, Singapore’s GDP was expected to shrink 1.9%, coming off from a peak of 12.3% expansion in Q4 last year.
At the same time, the Monetary Authority of Singapore (MAS) has affirmed the monetary policy of zero appreciation against the currencies of major trading partners. In a semi-annual statement on Thursday, 13 April, MAS noted “A neutral policy stance is appropriate for an extended period and should ensure medium-term price stability.”
Looking at the performance of each sector of the economy, MTI said the manufacturing sector expanded by 6.6% in Q4 from a year ago, thanks to the expansions in the electronics and precision engineering clusters. Its growth outweighed output declines in the biomedical manufacturing, transport engineering and general manufacturing sectors.
Up from the 1% growth in the previous quarter, the services-producing industries expanded by 1.5% on a year-on-year basis in Q1. This was mainly supported by the transportation and storage sectors and wholesale and retail trade.
On the other hand, the construction sector shrank by 1.1% on a year-on-year basis in Q1, furthering the 2.8% decline in the previous quarter. The ministry said this was due to the slowdown in private sector construction activities.
