Singapore’s economy grew much faster than initially thought in the third quarter, however the uptick may not change the modest outlook for economic growth in the city state. Meg Teckman reports.
Singapore avoids recession in the third quarter with a much better than expected final reading of the economy. After April to June's contraction of 2.6 percent quarter-on-quarter, Q3 GDP rose nearly two percent on a seasonally adjusted basis. This is a large jump from the government's initially estimated 0.1 percent rise as well as Reuters polls indicating a flat quarter. Growth in the city-state was largely on the back of strong services, with retail and wholesale sectors outperforming. Yet manufacturing remained a drag on the economy for another three months as the uneven global recovery and slowdown in China hit Singapore's exports. This also caused the government to revise its full-year growth forecast down to "close to two percent". Directing the Singaporean economy towards its slowest annual growth since the global financial crisis in 2009. ENDS