Singapore returns to growth in third quarter, averting recession
By Michelle Jamrisko
(Bloomberg) — Singapore’s economy returned to growth in the third quarter, averting a recession while showing the fragility of post-pandemic prospects as the world outlook darkens.
Gross domestic product in the three months through September rose 1.5% from the previous quarter, the Ministry of Trade and Industry said in a statement Friday. That’s faster than the median estimate for a 0.7% expansion in a Bloomberg survey.
On a year-on-year basis, the economy expanded 4.4% after a revised 4.5% growth in the previous quarter. Survey respondents had predicted a 3.5% growth.
Other details from the GDP print:
Manufacturing +1.5% year-on-year, after +5.7% in the previous quarter
Construction +7.8%, after +4.8%
Services industries +6.1%, after +4.8%
The trade-reliant city-state, which leaned on its financial services industry for growth support during the pandemic, is now seeing recovery in more sectors including food and beverage and hospitality after a full post-COVID reopening.
Even so, Singapore’s exposure to the global economy means slowdowns in China and Europe, the Federal Reserve-led interest-rate hikes, and supply-chain bottlenecks pose growth risks.
Officials convening in Washington this week for meetings organized by the International Monetary Fund and the World Bank have painted a bleaker picture of the global outlook, with IMF Managing Director Kristalina Georgieva predicting one-third of the world economy will see recession this year and the next. She warned that global output could decline by $4 trillion through 2026 — roughly the size of the German economy.
In August, the MTI narrowed the full-year projection to a range of 3%-4% from a 3%-5% prior estimate.
©2022 Bloomberg L.P.
