Singapore’s economy continued to contract in the fourth quarter, but at a slower pace than the previous quarter, as industries such as manufacturing, wholesale trade and finance recorded growth despite the pandemic.
The country’s gross domestic product declined by 2.4% in the fourth quarter from a year earlier, according to revised data released by the Ministry of Trade and Industry on Monday. That compared with the advance estimate of 3.8% contraction for the fourth quarter. GDP contracted 5.8% in the third quarter.
Manufacturing grew 10.3% from a year earlier in the fourth quarter, extending an 11.0% expansion in the third quarter. Wholesale trade expanded 1.8% in the fourth quarter, a turnaround from the 5.0% contraction in the third quarter, while the finance and insurance industry grew 4.9% in the fourth quarter following 4.2% growth in the third quarter.
Construction contracted 27.4% in the fourth quarter, an improvement from the 52.5% contraction in the third quarter. Retail trade shrank 4.7% in the fourth quarter, a smaller decline than the 8.6% contraction in the third quarter. Services-producing industries contracted 4.7% in the fourth quarter, an improvement from an 8.3% contraction in the third quarter.
On quarter, GDP grew 3.8% in the fourth quarter on a seasonally adjusted basis. That compared with the advance estimate for a 2.1% expansion. GDP expanded 9.0% in the third quarter.
For the whole of 2020, GDP shrank 5.4%, compared with the advance estimate for a 5.8% contraction.
Singapore’s Covid-19 situation remains under control and its vaccination program is underway.
However, the pace of border re-opening has slowed amid the global surge in Covid-19 cases and the emergence of more contagious strains of the virus. Against this external and domestic backdrop, the Singapore economy is expected to see a gradual recovery over the course of the year, although the outlook remains uneven across sectors, the MTI said.
Taking into account the developments in the global and domestic economies, the MTI has maintained Singapore’s GDP growth forecast at 4.0% to 6.0% for 2021, it said.
Write to Ronnie Harui at [email protected]
