Singapore’s Q4 2019 GDP Disappoints Markets
The economy of Singapore expanded at the slowest pace in 10 years during the last quarter of 2019. Singapore’s Q4 2019 GDP reading came in at 0.7%; in comparison, GDP for 2018 stood at 3.1%. The government expects 2019’s GDP to be anywhere between 0.5% and 2.5% while DBS Bank estimates last year’s GDP at 1.4%.
One of the fastest growing economies in Asia, Singapore has witnessed a slowdown as a spillover effect of the prolonged trade tensions between the US and China through 2018 and 2019. Annual growth in Q4 GDP stood at 0.8% in 2019 when compared with 2018.
Singapore’s economic growth has reduced on account of a slowdown in the manufacturing sector by 1.5% YoY. In contrast, this sector had witnessed a 7% expansion in the previous year. The services sector in Singapore also grew at a slower pace in 2019 than in 2018 – 1.1% vs. 2.9%. On the positive side, however, construction activity saw an uptick, with the sector expanding at 2.5% in 2019 after contracting by 3.7% in the previous year.
Investors now turn their attention to the fiscal budget which is due to be rolled out next month. There are hopes for a generous budget, boosted by surpluses collected over the previous years, which could potentially turn things around for Singapore’s economy.
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