Singapore economy beats forecasts to grow 4.1% year on year in Q3
Sequentially, gross domestic product rises by 2.1%
SINGAPORE’S economy grew 4.1 per cent year on year (yoy) in the third quarter of 2024, an improvement from the previous quarter’s 2.9 per cent growth, advance estimates from the Ministry of Trade and Industry (MTI) showed on Monday (Oct 14) morning.
This is the fastest pace of gross domestic product growth since the third quarter of 2022, when the economy expanded by 4.2 per cent.
On a seasonally adjusted quarterly basis, GDP rose by 2.1 per cent, faster than the previous quarter’s 0.4 per cent growth.
Both yoy and quarter-on-quarter growth figures beat private-sector economists’ expectations of 3.8 per cent and 2 per cent respectively, according to a poll by Bloomberg.
Manufacturing grew 7.5 per cent yoy in Q3, reversing from the 1.1 per cent fall charted in the previous quarter.
Growth in the sector was supported by output expansions across all clusters except for biomedical manufacturing, said MTI.
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Sequentially, manufacturing expanded 9.9 per cent, turning around from the previous quarter’s 1.2 per cent contraction.
Meanwhile, construction grew 3.1 per cent yoy, easing from the 4.8 per cent growth recorded in the previous quarter.
An increase in public-sector construction output contributed to the sector’s growth in the third quarter, said MTI.
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Construction growth was flat sequentially, slowing from the 3.4 per cent growth in the second quarter.
Overall services growth was 3.3 per cent in Q3, slowing from the 3.6 per cent growth in the previous quarter. Sequentially, the services industries nudged up 0.3 per cent, slightly slower than the 0.4 per cent in Q2.
Within services, the wholesale and retail trade sector, along with the transportation and storage sector, collectively expanded 3.5 per cent, easing from the 3.9 per cent growth chartered in the previous quarter.
But sequentially, the cluster shrank by 0.6 per cent, reversing from the 2.1 per cent growth in the preceding quarter.
The group of services sectors comprising information and communications, finance and insurance, and professional services grew 4.3 per cent on the year, decelerating from the 5.4 per cent growth in Q2.
Quarter on quarter, this cluster of services expanded 1.6 per cent, slightly faster than the 1.2 per cent growth in the previous quarter.
Growth for the remaining group of services sectors – accommodation and food services, real estate, administrative and support services, as well as other services – was 1 per cent yoy. This was the same as the previous quarter.
These services sectors expanded by 0.8 per cent sequentially, rebounding from the 1.3 per cent contraction recorded in the preceding quarter.
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