Singapore's economy grows at slower pace in Q3

Illustrative image (Photo: AFP/VNA)

Singapore (VNA) - Singapore's gross domestic product (GDP) rose 6.5 percent on a year-on-year basis in the July-September period, much lower than the growth rate of 15.2 percent in the previous quarter, said the Ministry of Trade and Industry (MTI) on October 14.

The pace of growth was weaker than the 7 percent forecast by economists in a Monetary Authority of Singapore survey last month, while a Bloomberg poll had predicted a 6.6 percent expansion.

Analysts said the growth moderation was expected, given the return to phase two (heightened alert) and tightened COVID-19 restrictions between July and August.

However, on a quarter-on-quarter seasonally adjusted basis, MTI data showed the economy expanded by 0.8 percent in the third quarter of this year, a reversal from the 1.4 percent contraction in the preceding quarter.

The quarterly gain is a sign that sequentially the economy is on track for above-trend growth in the quarters ahead, analysts said.

Selena Ling, head of treasury research and strategy at OCBC Bank, said on an annual basis the first-half 2021 growth stands at 7.7 percent, but will likely slow to around 5.8 percent in the second half as low base effects fade./.

VNA