Singapore: GDP growth records best reading since Q4 2022 in Q3 2023
GDP growth gained steam and beat market expectations, rising to 0.7% year on year in the third quarter, from 0.5% in the second quarter. Q3’s reading marked the best result so far this year.
Moreover, on a seasonally adjusted quarter-on-quarter basis, economic growth accelerated to 1.0% in Q3, from the previous period’s 0.1% expansion.
Preliminary data showed that goods-producing industries contracted 3.5% annually in the third quarter, a less pronounced drop than the second quarter’s 5.7% decrease, marking the best reading since Q4 2022. Manufacturing activity fell at a slower pace of 5.0% in the quarter (Q2: -7.7%), while construction output growth decelerated to 6.0% in Q3 from 7.7% in the prior quarter. Meanwhile, the services sector lost steam, growing 1.9% in Q3 (Q2: +2.8% yoy).
Nicholas Mapa, analyst at ING, commented on the outlook: “Despite the upside surprise, we expect domestic growth to remain challenged in the near term. Non-oil domestic exports remain deep in contraction due to fading global demand. The ongoing conflict in the Middle East and the sustained struggles of the Chinese recovery both suggest that global trade will stay subdued in the coming quarters.”