Singapore economy grows by 1.3% in 2012

SINGAPORE: Singapore’s economy slowed to 1.3 per cent last year from 5.2 per cent in 2011, mainly due to weakness in the externally—oriented sectors.

For 2013, the Ministry of Trade and Industry (MTI) is expecting growth of between 1.0 and 3.0 per cent as growth in the global economy is likely to remain subdued despite macroeconomic conditions stablising in recent months.

In the fourth quarter of 2012, the economy posted a growth of 3.3 per cent quarter—on—quarter, a reversal from the 4.6 per cent contraction in the third quarter.

On a year—on—year basis, the economy grew by 1.5 per cent, an improvement from the flat growth recorded in the preceding quarter.

The manufacturing sector grew 3.1 per cent on a quarter—on—quarter basis, reversing from the 16.6 per cent contraction in the previous quarter.

This was largely due to the rebound in the output of biomedical manufacturing and transport engineering clusters.

The construction sector contracted by 3.9 per cent, mainly due to the decline in private sector building activities.

In the services sector, the wholesale and retail trade grew modestly by 2.3 per cent on a quarter—on—quarter basis.

However, the finance and insurance sector declined by 1.3 per cent.

— CNA/fa