Singapore GDP Unexpectedly Expands as Outlook Improves
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Singapore’s economy unexpectedly expanded last quarter as manufacturing declined less than initially estimated amid recoveries in advanced countries.
Gross domestic product rose an annualized 0.1% in the three months through June from the previous quarter, when it climbed a revised 1.8%, the trade ministry said in a statement today.
The export-dependent Southeast Asian nation is set to benefit from a recovery in global growth, which is helping to offset higher business costs as the government pursues a plan to slow the inflow of foreign workers, boost productivity and attract new industries.
The economy expanded 2.4 % in the second quarter from a year earlier, after growing a revised 4.8 % in the previous three months, the trade ministry said today.
Manufacturing declined 15.2 % in the second quarter from the previous three months, compared with a July estimate of a 19.4 % contraction. Services rose 4.5 % in the same period, while construction gained 0.3 %.
The central bank’s policy stance remains appropriate and unchanged, said Jacqueline Loh, deputy managing director at the Monetary Authority of Singapore.
While domestically-oriented sectors such as business services and information and communications are expected to remain resilient in the second half of the year, growth in some labor-intensive segments such as retail and food services may be weighed down by labor constraints, the trade ministry said.
Source: Bloomberg