Singapore’s GDP grew 5.9% y-o-y in the 4Q2021, according to advance estimates released by the Ministry of Trade and Industry (MTI) on Jan 3. The figure is lower than the 7.1% expansion recorded in the previous quarter.
On a q-o-q seasonally-adjusted basis, the economy expanded by 2.6% in the 4Q202, faster than the 1.2% growth in the preceding quarter.
For the whole of 2021, the economy grew by 7.2%, rebounding from the 5.4% contraction in 2020. MTI had forecasted for GDP to come in at “around 7%” for 2021, based on a Nov 24 statement.
The manufacturing sector expanded by 14% on a y-o-y basis in the 4Q2021, faster than the 7.9% growth in the 3Q. Growth during the quarter was supported by output expansions in all clusters. In particular, the electronics and precision engineering clusters continued to record strong output growth, driven by sustained global demand for semiconductors and semiconductor equipment respectively.
On a q-o-q seasonally-adjusted basis, the manufacturing sector expanded by 4.2%, an improvement from the 0.2% growth in the 3Q.
The construction sector grew by 2% on a y-o-y basis in the 4Q2021, slower than the 66.3% growth in the preceding quarter. In absolute terms, the value-added of the sector remained 26% below its pre-Covid, or its 4Q2019 level, as activity at construction worksites continued to be weighed down by labour shortages due to border restrictions on the entry of migrant workers.
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On a q-o-q seasonally-adjusted basis, the sector contracted by 4.4% in the fourth quarter, a reversal from the 4.9% growth in the previous quarter.
Among the services sectors, the wholesale & retail trade and transportation & storage sectors grew by 4.3% y-o-y in the fourth quarter of 2021, extending the 6.1% growth in the third quarter. All sectors within the group expanded during the quarter, in particular, the wholesale trade sector posted steady growth in tandem with the robust performance of Singapore’s merchandise exports.
By contrast, growth in the transportation & storage sector was partly due to low base effects, as travel restrictions had weighed heavily on the air transport segment in the fourth quarter of last year.
On a q-o-q seasonally-adjusted basis, the sectors grew by 2.3% in the 4Q, a turnaround from the 0.6% contraction in the preceding quarter.
The information & communications, finance & insurance and professional services sectors collectively expanded by 6% y-o-y basis in the 4Q2021, moderating from the 8% growth in the previous quarter, with all sectors within the group recording expansions.
On a q-o-q seasonally-adjusted basis, the sectors in the group posted growth of 3.1% in the fourth quarter, faster than the 1.5% expansion registered in the preceding quarter.
The remaining group of services sectors, which includes accommodation & food services, real estate, administrative & support services and other services sectors, grew by 3.1% y-o-y in the 4Q2021, extending the 3.8% growth in the previous quarter.
Within the group, all the sectors expanded except for the accommodation & food services sector, which was impacted by ongoing travel restrictions, as well as tighter domestic restrictions during the quarter as compared to the same period in 2020.
On a q-o-q seasonally-adjusted basis, these sectors expanded by 4.9% in the 4Q 2021, improving from the 1.5% growth in the preceding quarter.
Photo: Bloomberg
