Singapore’s GDP contracts by 7 percent in Q3 hinh anh 1Illustrative image (Photo: AFP)

Singapore (VNA)
- Based on advance estimates for the third quarter of 2020, the Singapore economy expanded by 7.9 percent on a quarter-on-quarter seasonally-adjusted basis, rebounding from the 13.2 percent contraction in the preceding quarter.

On a year-on-year basis, the economy contracted by 7 percent, an improvement from the 13.3 percent contraction in the second quarter, according to the Singaporean Ministry of Industry and Trade.

The improved performance of the Singapore economy in the third quarter came on the back of the phased re-opening of the economy following the Circuit Breaker that was implemented between April 7 and June 1 this year.

The manufacturing sector grew by 2 percent on a year-on-year basis in the third quarter, a reversal from the 0.8 percent contraction in the previous quarter. Growth of the sector was supported by output expansions in the electronics and precision engineering clusters, which were in turn driven by robust global demand for semiconductors and semiconductor manufacturing equipment.

Finance-insurance and information-communications sectors recorded steady growth during the quarter, the ministry said.

Meanwhile, the service sector contracted by 8 percent on a year-on-year basis in the third quarter, representing an improvement from the 13.6 percent decline in the previous quarter.

Within services, aviation- and tourism-related sectors like air transport and accommodation continued to see significant contractions, as global travel restrictions and sluggish travel demand brought air travel and visitor arrivals to a near complete standstill.

Other trade-related services sectors, such as wholesale trade, were also weighed down by weak external demand as major economies around the world continued to grapple with the COVID-19 pandemic.

Earlier, the ministry narrowed Singapore’s GDP growth forecast for 2020 to “-7.0 to -5.0 percent”, from “-7.0 to -4.0 percent”.

Singapore’s overall unemployment rate rose to 3.4 percent in August, climbing past the high of 3.3 percent recorded in September 2009 during the global financial crisis./.