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BUSINESS

Singapore economy expands 3.7 pct in Q1 2022

25/05/2022 10:28 AM

By Massita Ahmad

SINGAPORE, May 25 (Bernama) -- The Singapore economy grew by 3.7 per cent on a year-on-year basis in the first quarter of 2022, moderating from the 6.1 per cent expansion in the previous quarter, the republic’s Ministry of Trade and Industry (MTI) said.

In releasing the republic’s Economic Performance in First Quarter 2022 today, the ministry also maintained the 2022 gross domestic product (GDP) growth forecast at 3.0 to 5.0 per cent, with expansion likely to come in at the lower half of the forecast range.

On a quarter-on-quarter seasonally-adjusted basis, the republic’s economy expanded by 0.7 per cent, slower than the 2.3 per cent growth in the fourth quarter of 2021.

On sector performances, the manufacturing sector, among others, increased by 7.1 per cent year-on-year, extending the 15.5 per cent growth in the previous quarter.

“Growth during the quarter was supported by output expansions in the electronics, transport engineering, general manufacturing and precision engineering clusters, which outweighed output declines in the biomedical manufacturing and chemicals clusters,” it said.

The construction sector rose by 2.1 per cent year-on-year, easing from the 2.9 per cent growth in the previous quarter, as both public and private sector construction activities picked up during the quarter.

The transportation & storage sector surged by 5.9 per cent year-on-year, a moderation from the 7.5 per cent growth clocked in the fourth quarter.

“Within the sector, the air transport segment saw a strong pickup in activity as the number of air passengers handled at Changi Airport rose sharply following the further easing of border measures,” the MTI said.

The finance & insurance sector, meanwhile, expanded by 4.0 per cent year-on-year, moderating from the 5.6 per cent expansion in the previous quarter.

As for the Economic Outlook for 2022, the MTI said since February, the external economic environment has deteriorated, due in part to the onset of the Russia-Ukraine conflict.

In particular, the ministry said the conflict has disrupted the global supply of energy, food and other commodities, which has in turn exacerbated global inflationary pressures and adversely affected the growth of many economies.

Meanwhile, stringent measures implemented in China to contain its domestic COVID-19 outbreaks are likely to weigh on its economy and contribute to global supply bottlenecks.

“Consequently, global supply disruptions are projected to be more severe and prolonged than earlier expected, potentially persisting throughout 2022,” it said.

In the US, the MTI said GDP growth is projected to moderate in 2022 while the growth outlook of the Eurozone economy has weakened due to the Russia-Ukraine conflict.

As for the growth of Southeast Asian economies such as Malaysia, Indonesia and Thailand, the ministry  projected them to improve in 2022.

It will be supported by a pickup in domestic demand with the easing of public health measures in these economies, as well as sustained demand for their merchandise exports, the MTI said.

Domestically, the MTI noted that there are sectors in the Singapore economy which have seen a strengthening of their growth outlook, among others, the electronics cluster.

The cluster is expected to expand more strongly than earlier projected, bolstered by robust global demand for semiconductors from the 5G and automotive markets, as well as cloud services and data centres, it said.

Taking into account the performance of the Singapore economy in the first quarter, as well as the latest global and domestic economic developments, the MTI said it “continues to expect the Singapore economy to grow by 3.0 to 5.0 per cent in 2022, although growth is now more likely to come in at the lower half of the forecast range.

-- BERNAMA

 


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