Based on advance estimates, Singapore economy grew by 2.2 percent on a year-on-year basis in the second quarter of 2016, said the Ministry of Trade and Industry (MTI) in a press release on Thursday.
MTI said the 2.2 percent increase is marginally higher than the 2.1 percent growth in the previous quarter. While on a quarter-on- quarter seasonally-adjusted annualized basis, Singapore economy expanded by 0.8 percent, faster than the 0.2 percent growth in the preceding quarter.
The manufacturing sector expanded by 0.8 percent year-on-year in the second quarter, a reversal from the 0.5 percent decline in the previous quarter, said the ministry. Growth was supported by an increase in the output of the biomedical manufacturing and electronics clusters.
On a quarter-on-quarter basis, the sector grew at an annualized rate of 0.3 percent, following the 18.4 percent growth in the preceding quarter. MTI said the construction sector grew by 2.7 percent year-on-year in the second quarter, easing from the 4.5 percent growth recorded in the previous quarter.
The moderation in growth was largely due to a slowdown in private sector construction activities. On a quarter-on-quarter basis, the construction sector expanded at an annualized rate of 0.6 percent, lower than the 3.5 percent expansion in the preceding quarter.
Growth in the services producing industries came in at 1.7 percent year-on-year in the second quarter, the same pace of growth as in the previous quarter, according to the press release. Growth was driven mainly by the wholesale and retail trade and transportation and storage sectors.
Within the retail trade sector, growth was supported by strong motor vehicle sales. On a quarter-on-quarter seasonally-adjusted annualized basis, the services producing industries grew by 0.5 percent, reversing the 4.8 percent contraction in the preceding quarter.
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