Singapore’s Economy Expands by 4.1% in Q3 2024
Singapore’s economy gained momentum in the third quarter of 2024, achieving a year-on-year growth of 4.1%. This was a notable improvement from the 2.9% growth recorded in the previous quarter, according to advance estimates from the Ministry of Trade and Industry (MTI). On a seasonally adjusted quarter-on-quarter basis, the economy expanded by 2.1%, surpassing the 0.4% growth seen in the second quarter.
The manufacturing sector played a significant role in this growth, rebounding with a 7.5% expansion in Q3 2024, following two consecutive quarters of contraction. This recovery was driven by strong performance across all manufacturing clusters, except for biomedical manufacturing. Quarter-on-quarter, the sector grew by 9.9%, reversing the 1.2% contraction recorded in the second quarter.
The construction sector also contributed to the economy’s growth, expanding by 3.1% year-on-year, though this marked a slowdown from the 4.8% growth seen in the previous quarter. Public sector construction output drove this increase. However, on a quarter-on-quarter basis, construction growth remained flat, following a 3.4% rise in Q2.
In the services sector, wholesale and retail trade, along with transportation and storage, grew by 3.5% year-on-year, a slight decline from the 3.9% expansion in the previous quarter. Water and air transport supported growth in the transportation sector, while wholesale trade was bolstered by machinery and equipment. On a quarterly basis, these sectors contracted by 0.6%, reversing the 2.1% growth in Q2.
The information and communications, finance and insurance, and professional services sectors collectively grew by 4.3% year-on-year, down from 5.3% in Q2. Growth was driven by IT services and the banking sector. Quarter-on-quarter, these sectors grew by 1.6%, up from 1.2%.
Accommodation, food services, real estate, and administrative services grew by 1% year-on-year, consistent with Q2 figures. The accommodation sector benefited from the ongoing recovery in international tourism. On a quarterly basis, these sectors grew by 0.8%, rebounding from a 1.3% contraction in Q2.
Final GDP estimates, covering inflation, employment, and productivity, will be released in the Economic Survey of Singapore next month.
