Singapore's gross domestic product climbed a seasonally adjusted 9.2 percent on quarter in the third quarter of 2020, the Ministry of Trade and Industry said in Monday's final reading.
That was an upward revision from last month's preliminary reading of 7.9 percent following the 13.2 percent drop in the three months prior.
On a yearly basis, GDP was revised up to -5.8 percent from the preliminary reading of 7.0 percent following the 13.3 percent drop in the previous three months.
Upon the release of the data, the MTI said its GDP forecast for 2020 is -6.0 to -6.5 percent, while 2021 is pegged at 4.0 to 6.0 percent.
The improved performance of the Singapore economy came on the back of the phased resumption of activities in the third quarter following the Circuit Breaker that was implemented from April 7 to June 1, as well as the rebound in activity in major economies during the quarter as they emerged from their lockdowns.
By sectors, the manufacturing sector expanded 10.0 percent on year, reversing the 0.8 percent decline in the preceding quarter. The expansion was largely due to output growth in the electronics, biomedical manufacturing and precision engineering clusters. On a quarterly basis, the manufacturing sector grew 12.1 percent, rebounding from the 9.1 percent contraction in the previous quarter.
The construction sector shrank 46.6 percent on year, extending the 60.0 percent contraction in the preceding quarter, due to declines in both public sector and private sector construction works. On a quarterly basis, the sector grew 34.5 percent, a reversal from the 59.5 percent decline in Q2.
The wholesale and retail trade sector contracted 4.3 percent on year, easing from the 6.7 percent contraction in the previous quarter. Within the sector, the wholesale trade segment shrank primarily due to weakness in the fuel and chemicals and machinery, equipment and supplies sub-segments. Retail trade also contracted due to a decline in non-motor vehicular sales. On a quarterly basis, the sector expanded 2.3 percent, reversing the 1.8 percent contraction in the preceding quarter.
The transportation and storage sector fell 29.6 percent on year compared to the 39.2 percent decline in the second quarter. The air transport segment was weighed down by the continued slump in air passengers handled at Changi Airport due to ongoing global travel restrictions and sluggish air travel demand, while the water transport segment contracted because of a fall in sea cargo volume handled and container throughput. On a quarterly basis, the sector expanded 15.0 percent, a reversal from the 33.7 percent contraction in the previous quarter.
The accommodation and food services sector contracted 24.0 percent on year, improving from the 41.8 percent contraction in the preceding quarter. The accommodation segment shrank due to the continued plunge in international visitor arrivals, while the food services segment contracted as sales volumes across all sub-segments such as restaurants declined. On a quarterly basis, the sector grew 32.4 percent, rebounding from the 23.3 percent decline in Q2.
The information and communications sector expanded 2.0 percent on year, a turnaround from the 0.8 percent contraction in the previous quarter. Growth was largely driven by the IT and information services segment, which benefitted from resilient demand for enterprise IT solutions. On a quarterly basis, the sector grew 5.2 percent, reversing the 2.6 percent contraction in Q2.
Growth in the finance and insurance sector came in at 3.2 percent on year, higher than the 2.7 percent in the second quarter, supported by healthy expansions in the banking and insurance segments. On a quarterly basis, the sector added 0.1 percent, an improvement from the 2.0 percent contraction in the previous quarter.
The business services sector shrank 15.2 percent on year, extending the 20.6 percent contraction in the second quarter. The real estate segment contracted due to weakness in the commercial and industrial property space markets amidst the economic downturn, while the others shrank as tourism-related sub-segments were adversely affected by ongoing global travel restrictions. On a quarterly basis, the business services sector grew 7.0 percent, a reversal from the 17.9 percent decline in the preceding quarter.
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