SINGAPORE, NOV 22 – Singapore said today its economy grew more than expected in the third quarter and raised its forecast for the year on stronger demand from major trading partners.
The Trade Ministry said it sees an expansion of ‘around 3.5 per cent’ in 2024, exceeding the government’s previous estimate of 2 to 3 per cent.
The economic performance of the Asian city-state is often seen as a barometer of the global environment due to its heavy reliance on international trade.
The ministry said the economy grew 5.4 percent year-on-year in July-September, beating the initial estimate of 4.1 percent and economists’ forecasts of less than 4 percent.
The reading brought average growth for the first nine months of the year to 3.8 percent, prompting the ministry to raise its full-year outlook.
The increase was the second this year after officials in August raised their projection to 2 to 3 percent from 1 to 3 percent.
“Growth in the third quarter was mainly driven by the manufacturing, wholesale trade and finance and insurance sectors, which was partly driven by an improvement in the global electronics cycle,” the ministry said.
Manufacturing, the mainstay of the economy, grew 11 percent year-on-year, reversing a 1.1 percent contraction in the previous quarter.
The focus on all things related to artificial intelligence is boosting demand for computer chips, Singapore’s main export.
“The electronics cluster grew strongly, supported by strong demand for smartphones and personal computer semiconductor chips, although demand for automotive and industrial semiconductor chips remained weak,” the ministry said. – AFP
