Singapore GDP Contracts 0.7% In The First Quarter Of 2023

(RTTNews) - Singapore's gross domestic product declined a seasonally adjusted 0.7 percent on quarter in the first quarter of 2023, the Ministry of Trade and Industry said in Friday's preliminary reading.

That missed expectations for a decline of 0.2 percent following the downwardly revised 0.1 percent increase in the fourth quarter of 2022 (originally 0.3 percent).

On an annualized basis, GDP was up 0.1 percent - again shy of forecasts for a gain of 0.6 percent and down from 2.1 percent in the three months prior.

The manufacturing sector contracted 6.0 percent on year, worsening from the 2.6 percent contraction in the previous quarter. The weak performance of the sector was due to output contractions across all the manufacturing clusters, except for the transport engineering cluster. On a quarterly basis, the sector shrank 5.2 percent, a pullback from the 1.0 percent expansion in the fourth quarter of 2022.

The construction sector jumped 8.5 percent on year, extending the 10.0 percent growth in the previous quarter. Growth during the quarter was supported by expansions in both public and private sector construction output. On a quarterly basis, the sector expanded 1.8 percent, faster than the 1.4 percent expansion in the previous quarter.

Among the services sectors, the wholesale and retail trade and transportation and storage sectors collectively contracted 1.1 percent on year, a reversal from the 2.4 percent growth in the previous quarter. Within the group, the wholesale trade sector shrank in tandem with a decline in Singapore's merchandise exports. By contrast, the retail trade and transportation and storage sectors expanded, with the latter supported by robust growth in the air transport segment. On a quarterly basis, the sectors as a group contracted 1.0 percent, extending the 1.6 percent contraction in the fourth quarter of 2022.

The group of sectors comprising the information and communications, finance and insurance and professional services sectors grew 1.9 percent on year, moderating from the 2.5 percent growth in the previous quarter. All sectors within the group, except for the finance and insurance sector, expanded during the quarter. On a quarterly basis, the sectors as a whole shrank 1.0 percent, reversing the 1.1 percent growth in the fourth quarter of 2022.

The remaining group of services sectors (accommodation and food services, real estate, administrative and support services and other services sectors) grew 6.7 percent on year, extending the 9.0 percent growth in the previous quarter. All sectors within the group expanded during the quarter. On a quarterly basis, the sectors in the group collectively expanded 1.5 percent, faster than the 1.1 percent expansion in the preceding quarter.