Singapore economy grows 2 percent in 2016

Singapore economy expanded two percent last year – slightly stronger than the 1.8 percent growth earlier anticipated, thanks to turnaround in the manufacturing sector, The Straits Times Online reported on Friday.

The Ministry of Trade and Industry estimated this year’s growth rate ranging from 1 to 3 percent.

The fourth quarter of last year saw the fastest pace of growth in five years to 2.9 percent due to rebound in the manufacturing sector. The economy surged 12.3 percent in the final three months of 2016, rebounding from a contraction of 0.4 percent.

The manufacturing sector grew 3.6 percent, a reversal from a 5.1 percent slide the preceding year. This was driven largely by the electronics and biomedical manufacturing clusters even as transport engineering and general manufacturing continued to shrink.

Growth in construction sector was almost flat, logging just 0.2 percent compared to 3.9 percent in 2015.

Services which make up two-thirds of the economy expanded 1 percent in 2016 compared to 3.6 percent a year earlier.

MTI predicted global economy to pick up this year, in particular, the United States and Asean are likely to see stronger growth even as China’s economy continues to slow.