Singapore's gross domestic product (GDP) rose 6.5 percent on a year-on-year basis in the July-September period, much lower than the growth rate of 15.2 percent in the previous quarter, said the Ministry of Trade and Industry (MTI) on October 14.
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Illustrative image (Photo: AFP/VNA) |
The pace of growth was weaker than the 7 percent forecast by economists in a Monetary Authority of Singapore survey last month, while a Bloomberg poll had predicted a 6.6 percent expansion.
Analysts said the growth moderation was expected, given the return to phase two (heightened alert) and tightened COVID-19 restrictions between July and August.
However, on a quarter-on-quarter seasonally adjusted basis, MTI data showed the economy expanded by 0.8 percent in the third quarter of this year, a reversal from the 1.4 percent contraction in the preceding quarter.
The quarterly gain is a sign that sequentially the economy is on track for above-trend growth in the quarters ahead, analysts said.
Selena Ling, head of treasury research and strategy at OCBC Bank, said on an annual basis the first-half 2021 growth stands at 7.7 percent, but will likely slow to around 5.8 percent in the second half as low base effects fade./.