Singapore’s economy cooled in the third quarter, but still expanded at a brisk pace, helped in part by a strong manufacturing sector.
The government also raised its growth outlook for the full year.
Singapore’s Ministry of Trade and Industry said the country’s third-quarter growth came in at 7.2 percent, versus the 8.2 percent of the second quarter. Total demand expanded by 9.8 percent, cooler than the 11 percent in the second quarter as external demand fell three percentage points. Domestic growth, however, increased to 8 percent from 4.9 percent last quarter, helped by stronger consumption spending.
The manufacturing sector grew at an 11 percent clip in the quarter, down from13 percent, as growth eased in electronics, biomedical manufacturing, precision engineering and chemicals. But transport engineering surged by 39 percent, the government said.
Singapore’s construction sector grew by 2.3 percent in the third quarter, versus 0.4 percent in the second quarter.
Manufacturing and construction employment increased by 11,300 and 5,500, respectively, in the quarter.
:”Overall, the economic outlook remains benign,” the Ministry said. “But there are several downside risks,” including a slowing U.S. housing market, inventory adjustments within the semiconductor space, and the potential for higher oil prices, among other things.
Singapore’s economy is heavily dependent on the health of the global economy, as it is a large exporter of goods. Its economy is also sometimes seen as a barometer of the world's overall economic condition.