On a quarter-on-quarter seasonally-adjusted annualised basis, the economy expanded by 1.9 per cent, a reversal from the 2.6 per cent contraction in the second quarter, MTI said.
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That was faster than the 0.1% growth it provided in advance estimates released last month.
The GDP data showed that the manufacturing sector contracted 4.6 percent in July-September from the previous quarter.
Taking these factors into consideration, the ministry expected that Singapore’s economy would grow by “close to 2.0 percent” for the whole of 2015.
For 2016, against the backdrop of an expected continued moderation in China’s economic growth even as advanced economies improve modestly, NODX is forecast to grow at a broadly similar pace of 0.0 to 2.0 per cent, the trade promotion agency said. Downside risks to growth are within the MAS’s planning parameters and the central bank’s policy remains appropriate and unchanged, she said.
The latest forecast by the Ministry of Trade and Industry (MTI) is on the lower end of an earlier projection of 2.0-2.5 growth.
“Given the current subdued demand, and the fact that the global Monetary Fund and World Bank have both lowered forecasts, it isn’t a surprise that Singapore has followed suit”, said Song Seng Wun, an economist at CIMB Private Banking.
However, an uneven and sluggish global recovery has weighed on Singapore’s manufacturing sector, which has been a drag on growth this year.
It said sectors such as finance and insurance would likely post modest growth and manufacturing would remain weak.
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The decline from a growth rate of 2.9 percent in 2014 reflects the impact on Asia of slowing demand for its exports from major world economies including the United States, China and Europe.
