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Manufacturing Boosts Singapore's 2Q Growth

Singapore's economy grew at its fastest pace in nearly two years in the second quarter as manufacturing of pharmaceuticals and electronics rebounded. The government said Friday that gross domestic product rose 3.7 percent from a year earlier in the April-June quarter.

SINGAPORE (AP) -- Singapore's economy grew at its fastest pace in nearly two years in the second quarter as manufacturing of pharmaceuticals and electronics rebounded.

The government said Friday that gross domestic product rose 3.7 percent from a year earlier in the April-June quarter. That was the fastest growth since the third quarter of 2011 when the trade-reliant economy expanded 5.7 percent.

The second quarter figure is an advance estimate based on activity in April and May, with updated data to be released in August.

Singapore's growth is closely tied to overseas demand, making it a bellwether for global economic conditions.

Manufacturing grew 1.1 percent in the second quarter after contracting 6.9 percent in the previous quarter. Construction slowed to 5.6 percent growth from 6.8 percent in the first quarter.

Service industries, which have become more important to the economy after the opening of two casino-resorts in the city-state, expanded 5 percent.

Barclays Capital said in a report that Singapore's exports have remained subdued despite higher industrial production, which suggests the final figure for the second quarter will be lower than the advance estimate.

The government expects the economy to grow between 1 percent and 3 percent this year.