Singapore’s GDP grows by 14.3% in Q2 2021 – Advance Estimates

by BERNAMA / pic by TMR FILE

SINGAPORE – The Singapore economy grew by 14.3 per cent year-on-year (y-o-y) in the second quarter (Q2) of 2021, extending the 1.3 per cent growth in the previous quarter, according to the republic’s Ministry of Trade and Industry (MTI) today.

In its advance estimates released here, MTI said the strong growth was largely due to the low base in Q2 2020 when Gross Domestic Product (GDP) fell by 13.3 per cent due to the Circuit Breaker (CB) measures implemented from April 7 to June 1, 2020.

The advance GDP estimates for Q2 2021 are computed largely from data in the first two months of the quarter – April and May 2021.

In absolute terms, the ministry said GDP in Q2 2021 remained 0.9 per cent below its pre-pandemic level in Q2 2019.

On a quarter-on-quarter seasonally-adjusted basis, the Singapore economy contracted by 2.0 per cent in Q2 2021, a reversal from the 3.1 per cent growth in the preceding quarter, said the ministry.

On sectoral performance, MTI said the manufacturing sector grew by 18.5 per cent on a y-o-y basis in the quarter under review, extending the 11.3 per cent growth in the previous quarter.

“Growth was supported by output expansions in all clusters except for the biomedical manufacturing cluster,” said the ministry.

The construction sector, meanwhile, expanded by 98.8 per cent y-o-y in Q2 2021, a turnaround from the 23.1 per cent contraction in the preceding quarter.

“The sharp upturn was due to low base effects as the CB measures had resulted in a stoppage of most construction activities in the second quarter of last year,” it said.

In absolute terms, MTI said, the value-added of the sector remained 31.6 per cent below its pre-pandemic Q2 2019 level.

Among the services sectors, the wholesale & retail trade and transportation & storage sectors grew by 9.3 per cent in Q2 2021, reversing the 1.7 per cent contraction in the previous quarter.

The information & communications, finance & insurance and professional services sectors collectively expanded by 7.8 per cent in Q2 2021, extending the 3.2 per cent growth in the preceding quarter.

The remaining group of services sectors, such as accommodation & food services, real estate, administrative & support services and other services sectors, expanded by 13.4 per cent in Q2 2021, a turnaround from the 3.8 per cent contraction in the previous quarter, it said.

The ministry will release the preliminary GDP estimates for Q2 2021, including performance by sectors, sources of growth, inflation, employment and productivity, in its Economic Survey of Singapore in August 2021.