SINGAPORE (ICIS)--Singapore's economy fell by 5.8% year on year in the third quarter, moderating from the 13.3% contraction in the previous quarter, official data showed on Monday.
The improved performance of the Singapore economy came on the back of the phased resumption of activities in the third quarter, following the "Circuit Breaker" measure that was implemented from 7 April to 1 June 2020, the Ministry of Trade and Industry (MTI) said in a statement.
The rebound in activity in major economies during the third quarter as they emerged from their lockdowns also supported Singapore's economic performance, it said.
Singapore's economy is now expected to contract by between 6% and 6.5% in 2020, narrower than the previous official forecast range of 5% to 7% contraction for the year, the MTI said.
The country's GDP projected to grow by between 4.0% and 6.0% in 2021, it said.
"The recovery of the Singapore economy in the year ahead is expected to be gradual, and will depend to a large extent on how the global economy performs and whether Singapore is able to continue to keep the domestic Covid-19 situation under control," it said.
By sectors, the manufacturing sector expanded by 10.0% year on year in the third quarter of this year, reversing the 0.8% decline in the preceding quarter.
However, the construction sector shrank by 46.6% year on year in the third quarter, extending the 60.0% contraction in the preceding quarter, due to declines in both public sector and private sector construction works.
"Weak external demand conditions and ongoing global travel restrictions are expected to continue to weigh on trade-related services sectors like wholesale trade, and aviation- and tourism-related sectors like air transport and accommodation," the MTI said.
"On the other hand, the outlook for the manufacturing sector has improved, driven primarily by the electronics cluster," it said.