Singapore’s GDP up 7.1% on-year in Q3, monetary policy unchanged

Advance estimates showed that Singapore’s real gross domestic product (GDP) rose by 7.1 per cent in the third quarter compared to the same period in 2005, says the Ministry of Trade and Industry.On a quarter-on-quarter seasonally adjusted annualised basis, real GDP grew by 6.0 per cent, compared with a 3.4 per cent expansion in the preceding quarter.

The advance estimates, based largely on data from July and August, give an early indication of the economy’s performance in the July-September quarter.

The manufacturing sector is estimated to have grown by 10.0 per cent in the third quarter.

The moderation was due to slower growth in biomedical manufacturing, electronics and chemicals clusters while precision engineering and transport engineering clusters strengthened from the previous quarter.

The construction sector continued to pick up in the third quarter. It is estimated to have expanded by 1.0 per cent, after registering a 0.3 per cent growth in the previous quarter.

Growth of the services producing industries is estimated to have eased slightly to 6.6 per cent in the third quarter. Except for the wholesale and retail trade, and hotel and restaurants sectors, all other services sectors registered slower growth.

Separately, Singapore’s central bank said it would maintain its policy of a “gradual and modest appreciation” of the Singapore dollar, a decision widely expected by the market.

“The MAS will maintain the policy of a modest and gradual appreciation of the S$NEER policy band,” the Monetary Authority of Singapore said in its bi-annual monetary policy statement on Tuesday.

Source: Channel NewsAsia, 10 October 2006

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