Singapore’s GDP has expanded by 3.4% y-o-y in the 1Q2022, according to advance estimates released by the Ministry of Trade and Industry (MTI) on April 14.
The figure represents a moderation from the 6.1% growth seen in the 4Q2021, and comes in lower than the 3.8% forecast by economists in a Bloomberg poll
On a q-o-q seasonally-adjusted basis, the economy expanded by 0.4%, slower than the growth seen in the previous quarter.
The manufacturing sector expanded by 6.0% y-o-y in the 1Q2022, moderating from the 15.5% seen in the previous quarter.
The growth was supported by output expansions in all clusters, particularly the electronics and precision engineering clusters due to the global demand for semiconductors and semiconductor equipment. The chemicals cluster was the only one to register a contraction during the quarter.
On a q-o-q seasonally-adjusted basis, the manufacturing sector contracted by 1.2% in the 1Q2022, reversing from the 6.3% growth in the previous quarter.
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The construction sector expanded by 1.8% y-o-y in the 1Q2022, moderating from the 2.9% growth from the previous quarter. In absolute terms, the value-added of the sector remained 25.3% below its pre-Covid-19 levels. This was due to the lower activity at worksites, weighed down by labour shortages. The sector expanded by 2.8% on a q-o-q basis, a turnaround from the 2.1% contraction in the 4Q2021.
In the services producing industries, the wholesale & retail trade and transportation & storage sectors registered expansions of 3.2% in the 1Q2022, down from the 4.2% expansion seen in the previous quarter. All sectors within the group saw expansions, especially the wholesale trade sector, which grew in tandem with the strong performance of Singapore’s merchandise exports. The transportation & storage sector also expanded, which was partly attributable to the low base effects in the same period the year before due to the travel restrictions.
Overall, the value-added of the wholesale & retail trade and transportation & storage sectors remained 1.2% below its pre-Covid-19 levels in the 1Q2022. On a q-o-q basis, the sectors grew by 1.2%, easing slightly from the 1.3% growth in the previous quarter.
The information & communications, finance & insurance and professional services sectors collectively expanded by 5.3% on a y-o-y basis, lower than the 6.6% growth seen in the previous quarter. All sectors within the group saw expansions, especially the information & communications sector, which continues to be supported by the strong demand for IT and digital solutions. Growth in the finance & insurance sector was driven in part by activities auxiliary to financial services such as security dealing and payments processing activities, as well as the insurance segment. On a q-o-q basis, the sectors in the group contracted by 2.0% in the 1Q2022, reversing from the 2.5% expansion seen in the 4Q2021.
The accommodation & food services, real estate, administrative & support services and other services sectors grew by 3.0% y-o-y in the 1Q2022, higher than the 1.6% registered in the previous quarter. All sectors within the group expanded, save for the accommodation & food services sector, which fell primarily due to the fall in government demand for hotel rooms to serve as Covid-19 quarantine facilities.
On the whole, the value-added of this group of sectors remained 4.3% below its level in the first quarter of 2019. On a q-o-q basis, the sectors expanded by 2.9%, extending the 2.6% growth in the quarter before.
Cover image: Samuel Issac Chua/The Edge Singapore
