Singapore revises Q1 GDP higher to 3.7%, 2022 growth forecast unchanged at 3-5%

SINGAPORE (ICIS)–Singapore’s economy expanded by 3.7% year on year in the first quarter of this year, up from a preliminary estimate of 3.4%, while full-year growth forecast was kept unchanged at 3.0-5.0%, official data showed on Wednesday.

On a quarter-on-quarter seasonally-adjusted basis, the economy expanded by 0.7% in the first quarter, slower than the 2.3% growth in the fourth quarter of 2021, the Ministry of Trade and Industry (MTI) said in a statement.

The manufacturing sector expanded by 7.1% year on year in the first quarter, higher than the initial estimate of 6.0% and extending the 15.5% growth recorded in the previous quarter.

The construction sector grew by 2.1% year on year in the first quarter, up from the previous projection of a 1.8% growth, but eased from the 2.9% growth in the previous quarter, as both public and private sector construction activities picked up during the quarter.

The MTI kept its forecast for the full year at 3.0-5.0% but warned that “growth is now more likely to come in at the lower half of the forecast range”.

“MTI’s assessment is that the external demand outlook for the Singapore economy has weakened compared to three months ago,” the ministry said.

“In particular, 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,” it said of the effects of the ongoing Russia-Ukraine conflict.

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, the MTI said.

The growth outlook for some outward-oriented sectors in the Singapore economy has weakened this year, the MTI said.

“For instance, as China is a key market for petroleum and chemicals products from Singapore, its economic slowdown is likely to adversely affect the growth prospects of Singapore’s chemicals cluster and the fuel & chemicals segment of the wholesale trade sector,” it added.