Singapore’s economy saw a 7 per cent contraction on a year-on-year basis in the third quarter of 2020, rebounding from the 13.2 per cent plunge in the preceding quarter.
The Ministry of Trade and Industry (MTI) released the economic advance estimates on 14 October 2020.
The improved performance of the economy translates to a 7.9 per cent gross domestic product (GDP) expansion on a quarter-on-quarter seasonally-adjusted basis.
The expansion came after the phased re-opening of the economy following the circuit breaker implemented between 7 April and 1 June 2020.
The rebound was largely due to the manufacturing sector’s two per cent growth on a year-on-year basis in the third quarter, a reversal from the 0.8 per cent contraction in the previous quarter.
“Growth of the sector was supported by output expansions in the electronics and precision engineering clusters, which were in turn driven by robust global demand for semiconductors and semiconductor manufacturing equipment,” said MTI in a statement.
Meanwhile, the construction sector shrank by 44.7 per cent on a year-on-year basis in the third quarter, extending the 59.9 per cent decline in the previous quarter.
The slow resumption of construction activities as firms implemented safe management measures to restart work was why construction output in the third quarter remained weak, according to MTI.
The services-producing industries also contracted by eight per cent on a year-on-year basis in the third quarter, better than the 13.6 per cent decline in the previous quarter.
Within services, aviation- and tourism-related sectors like air transport and accommodation continued to see significant contractions as global travel restrictions and sluggish travel demand continues.
In contrast, the finance and insurance and information and communications sectors recorded steady growth during the quarter.
