Singapore Q3 GDP growth slows to 6.5% amid lower chemicals output

Author: Nurluqman Suratman

2021/10/14

SINGAPORE (ICIS)--Singapore's economy grew in the third quarter at an annualized rate of 6.5%, slowing from the 15.2% pace recorded in the preceding quarter, as chemicals output declined, official preliminary data showed on Thursday.

On a quarter-on-quarter seasonally-adjusted basis, the economy expanded by 0.8% in the September quarter, reversing 1.4% contraction in the preceding three months, the Ministry of Trade and Industry (MTI) said in a statement.

The manufacturing sector posted a 7.5% year-on-year growth in the third quarter, a deceleration from the 18% expansion rate in the previous quarter.

"Growth during the quarter was supported by output expansions in all clusters, except for the chemicals cluster," the MTI said.

"In particular, the electronics and precision engineering clusters continued to post strong growth, driven by sustained global demand for semiconductors and semiconductor equipment," it said.

Singapore's construction sector expanded by 57.9% on a year-on-year basis in the third quarter of 2021, following the 117.5% growth in the preceding quarter.

Details on third-quarter chemicals production were not disclosed in the preliminary data.

In August, chemicals output inched up 0.4% year on year after declining by 5.6% in July.

Thumbnail photo: Container vessels at Keppel Harbour in Singapore on 25 August 2021. (Photo by Joseph Nair/NurPhoto/Shutterstock)