Singapore Growth Soars 15.2% in Second Quarter

Singapore's business district skyline at dusk
Stephen Studd | The Photographer's Choice | Getty Images
Singapore's business district skyline at dusk

Singapore's economy grew an annualized 15.2 percent in the second quarter of the year from the first, well above expectations for an 8.3 percent rise in growth and its strongest showing in more than two years, data on Friday showed.

Strong growth in the manufacturing sector was behind the sharp jump in second-quarter gross domestic product (GDP) growth, according to the government's advanced estimates.

The manufacturing sector grew at an annualized adjusted 37.6 percent in the second quarter, compared with a decline of 12.7 percent in the first three months of the year.

(Read More: Singapore Growth Surprises on Surge in Financial Services)

"It's a good set of numbers and well above expectations. It looks like the manufacturing sector is doing better than expected," said Vasu Menon, vice president, Wealth Management at OCBC Bank told CNBC Asia's "Squawk Box".

One a year-on-year basis, the economy grew 3.7 percent in the second quarter compared with 0.2 percent growth in the previous quarter.

The rise in second-quarter GDP on a quarterly basis was the strongest since the first quarter of 2011.

(Read More: Bottom Line on Singapore GDP: Curb Your Enthusiasm)

"On its own the data implies an upward revision to our full-year growth forecast to 2.6 percent from 1.9 percent, which is near the high end of the official 1-3 percent range," Tim Condon, head of research for Asia at ING Financial Markets, said in a note.

Singapore's economic growth has been hurt by weak demand globally for exports and economists said they remained cautious about the outlook given concerns about China's economic outlook.

Data released earlier this week showed exports from China, the world's second largest economy, fell 3.1 percent in June from a year earlier, exacerbating concerns that a slowdown in Chinese growth could be deeper than anticipated.

(Read More: Singapore Faces Choppy Recovery: Central Bank)

"The impressive "high jump" of Q2 GDP must be discounted for a relatively "low bar" that perhaps exaggerates the quality of the jump," said Vishnu Varathan, market economist at Mizuho Corporate Bank in a note.

"Crucially, the outlook remains clouded by signs of sputtering growth momentum in China, and hints of fresh worries in the euro zone, despite an improving U.S. outlook," he added.

- Reuters contributed to this report