Singapore's economy grew by 1.6 percent year-on-year in the first quarter of 2012, slower than 3. 6 percent growth in the preceding quarter, Singapore's Ministry of Trade and Industry announced on Thursday.
On a quarter-on-quarter seasonally-adjusted annualised basis, the economy expanded by 10.0 percent, reversing the 2.5 percent contraction in the previous quarter, it said.
The improved growth momentum was largely attributable to the upturn in the manufacturing sector. On a sequential basis, the manufacturing sector expanded by an annualised rate of 19.8 percent, reversing the 11.1 percent contraction in the previous quarter.
The ministry said this turnaround was driven by increased production across all key manufacturing clusters, notably electronics and precision engineering.
On a year-on-year basis, however, the sector contracted by 1.0 percent due to a high base a year ago.
The construction sector grew by 7.7 percent on a year-on-year basis, an improvement from the 2.9 percent growth in the preceding quarter. On a sequential basis, the sector rebounded by an annualised rate of 32.1 percent, largely due to increased construction activities in the residential and institutional building segments.
The wholesale and retail trade sector contracted by 0.3 percent on a year-on-year basis, following the marginal growth of 0.9 percent in the preceding quarter. On a sequential basis, the sector contracted by an annualised rate of 2.3 percent. This weak performance was mainly attributable to a decline in re-export volume which negatively affected the wholesale trade segment.
The transportation and storage sector continued to see moderate growth, at 3.5 percent compared to a year ago and 1.5 percent ( annualised) on a sequential basis.
Growth in the finance and insurance sector moderated to 0.8 percent on a year-on-year basis, from 3.5 percent in the preceding quarter. On a sequential basis, the sector contracted for the second consecutive quarter, by 3.4 percent (annualised), partly due to sluggishness in fund management activities.
In contrast, the business services sector posted a faster year- on-year growth of 3.5 percent and a strong sequential gain of 12.7 percent (annualised), largely due to a pick-up in real estate transaction volume.
Supported by healthy visitor arrivals, tourism-related sectors continued to expand. The accommodation and food services and other services industries (which include arts, entertainment and recreation activities) grew by 4.0 and 5.1 percent respectively, compared to a year ago. /.