SINGAPORE, Singapore's economy increased 3.9 percent year on year in the second quarter, easing from the 4.5 percent growth in the first quarter, the Ministry of Trade and Industry (MTI) announced on Monday.

On a quarter-on-quarter seasonally-adjusted annualized basis, the economy expanded at a slower pace of 0.6 percent compared to the 2.2 percent growth in the first quarter, the ministry said.

In a breakdown, the manufacturing sector grew by 10.2 percent year on year, the construction sector contracted by 4.6 percent, the wholesale and retail trade sector expanded by 1.5 percent, the transportation and storage sector rose by 1.3 percent, the accommodation and food services sector grew by four percent.

The information and communications sector expanded by 5.2 percent, the finance and insurance sector grew by 6.7 percent, the business services sector grew by 2.1 percent, and the other services industries grew by 0.7 percent.

Looking ahead, the MTI said several of Singapore's key final demand markets are expected to see moderated growths in the second half of the year, and uncertainties and downside risks in the global economy have increased.

Therefore, MTI forecasts the pace of expansion in Singapore's economy is expected to moderate in the second half of 2018, following the strong performance in the first half. Meanwhile, outward-oriented sectors will remain as main engine to support the city-state's growth.

It added that considering the global and domestic economic environment, as well as the performance of the Singapore economy in the first half of the year, the GDP growth forecast for 2018 is maintained at 2.5 to 3.5 percent.

Source: NAM News Network