SINGAPORE: Singapore's economy contracted by 0.7 percent on-quarter in the second quarter of 2012, a reversal from a growth of 9.5 percent in the previous quarter.
On a year-on-year basis, the economy expanded by 2.0 percent, compared to 1.5 percent in the preceding quarter.
In a statement on
Friday, the Ministry of Trade and Industry (MTI) says it will narrow the
GDP growth forecast for 2012 from 1.0 percent to 3.0 percent, to 1.5
percent to 2.5 percent.
Similarly in his National Day message on
Wednesday, Prime Minister Lee Hsien Loong had said Singapore's economy
grew 1.7 percent in the first half of this year. He also said the
economy is on track for 1.5 percent to 2.5 percent growth for 2012.
MTI
says the pull-back in quarter-on-quarter growth was largely due to the
decline in externally-oriented sectors such as electronics
manufacturing, as well as wholesale trade and tourism-related services.
The manufacturing sector contracted marginally by 0.5 percent, following the 20.8 percent expansion in the preceding quarter.
On
a quarter-to-quarter basis, the construction sector decelerated to 0.9
percent from 27.9 percent in the preceding quarter, due to a slowdown in
construction activities.
Elsewhere, the wholesale and retail
sector contracted by 0.4 percent on-quarter, mainly due to the
deterioration in the wholesale segment.
The transportation and
storage sector grew by a robust 7.2 percent on a quarter-on-quarter
basis, while growth in the finance and insurance sector was at a modest
pace of 2.1 percent.
Visitor arrivals also moderated recently. Growth of accommodation and food services declined by 5.8 percent on-quarter.
Singapore's growth outlook remains cautious in the second half of the year.
MTI
says it expects global economic conditions to remain subdued, as
consumer spending in advanced countries will be dampened by weak labour
market conditions.
- CNA/de