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Singapore Q2 GDP Grows Annualized 14.0%

Reuters
WATCH LIVE

Singapore's economy grew at a faster-than-expected annualized rate of 14.0% in the second quarter, thanks to a boom in the construction and financial industries, data showed on Friday.

The seasonally adjusted rise from the previous quarter compared with 12.4% growth forecast by analysts in a Reuters poll and the government's advance estimate of 12.8% which was largely based on data from April and May.

Compared with a year earlier, gross domestic product (GDP) expanded 8.6% in the second quarter, the Ministry of Trade and Industry said in a statement, faster than the median 8.0% forecast by economists.

The government on Wednesday raised its full-year economic growth forecast to
7-8%, from 5-7% previously, putting it on a level with last year's strong expansion of 7.9%.

"The improved outlook reflects higher growth in financial and business services, manufacturing and construction," the Ministry of Trade and Industry said in a press statement on Friday.

"The driving factors underpinning the higher growth forecast are broad-based: strong global demand in the biomedical, aerospace and marine industries, robust regional demand for financial services, and a buoyant domestic property market."

The upgrade was widely predicted by economists, although some said that the government's forecast of 8% was conservative given the economy's strong growth in the first six months.