Updated: 08/05/2014 23:17

Singapore still expected to grow by 2%-4% this year despite slow down in Q2 GDP: MTI



Singapore still expected to grow by 2%-4% this year despite slow down in Q2 GDP: MTI

Trade Minister Lim Hng Kiang says the economy remains on track to expand by between two and four per cent this year, despite the slowdown in growth in the second quarter. 

Singapore's Gross Domestic Product, or GDP, grew by 2.1 per cent in the second quarter compared to a year ago, slower than the rise of 4.7 per cent in the first quarter. 

Mr Lim said that quarter-to-quarter fluctuations in growth are to be expected as Singapore is an an externally-oriented economy. 

He was responding in parliament to a question on Singapore's growth outlook for this year. 

The slower quarterly growth was largely a result of weakness in the manufacturing sector, which expanded by only 0.2 per cent year-on-year compared to nearly 10 per cent growth in the first three months of the year. 

That was because of a contraction in electronics production and slower growth in transport engineering. 

Mr Lim added that transport engineering output tends to be volatile, as it depends on when payments for projects such as the construction of oil rigs are received. 

However, Mr Lim expects the sector to recover in the coming quarters as the order books of major marine and offshore companies remain healthy. 

Looking ahead, externally-oriented sectors such as manufacturing and wholesale trade should support Singapore's growth, against the backdrop of a modest recovery in the global economy.

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