Based on advance estimates released by the Ministry of Trade and Industry on October 14, the Singapore economy grew by 4.1% on a year-on-year basis in the third quarter of 2024 (Q3 2024), extending the 2.9% growth in the previous quarter. On a quarter-on-quarter seasonally adjusted basis, the economy expanded by 2.1%, faster than the 0.4% growth in the second quarter.
The manufacturing sector expanded by 7.5% year-on-year in the third quarter, rebounding from the 1.1% contraction in the previous quarter. Growth was supported by output expansions across all manufacturing clusters, except for the biomedical manufacturing cluster. On a seasonally adjusted basis, the sector grew by 9.9%, a sharp turnaround from the 1.2% contraction in the second quarter.
The construction sector grew by 3.1% year-on-year in Q3 2024, easing from the 4.8% growth in the preceding quarter. Growth during the quarter was on account of an increase in public sector construction output. On a quarter-on-quarter seasonally adjusted basis, the sector’s growth was flat, moderating from the 3.4% growth in the second quarter.
Among the services sectors, the wholesale & retail trade and transportation & storage sectors collectively expanded by 3.5% year-on-year in Q3 2024, extending the 3.9% growth in the previous quarter. All sectors within the group, except for the retail trade sector, posted growth during the quarter. Growth in the wholesale trade sector was driven by the machinery, equipment & supplies and “others”1 segments, while that in the transportation & storage sector was largely supported by the water and air transport segments. On a quarter-on-quarter seasonally adjusted basis, the wholesale & retail trade and transportation & storage sectors as a whole shrank by 0.6%, a reversal from the 2.1% expansion in the second quarter.
The group of sectors comprising the information & communications, finance & insurance and professional services sectors grew by 4.3% year-on-year in Q3 2024, moderating from the 5.4% growth in the previous quarter. All sectors within the group expanded during the quarter. Growth in the information & communications sector was primarily driven by the IT & information services segment, while that in the professional services sector was largely supported by the head offices & business representative offices segment. Meanwhile, the finance & insurance sector grew on the back of an expansion in activity across all segments, particularly the banking, activities auxiliary to financial services and fund management segments. On a quarter-on-quarter seasonally adjusted basis, the sectors in the group collectively expanded by 1.6%, picking up from the 1.2% growth in the second quarter.
The remaining group of services sectors (that is, accommodation & food services, real estate, administrative & support services and other services sectors) grew by 1.0% year-on-year in Q3 2024, the same pace as that recorded in the preceding quarter. Within the group, growth was led by the accommodation and other services sectors. In particular, the accommodation sector expanded in tandem with the continued recovery in international visitor arrivals. On a quarter-on-quarter seasonally adjusted basis, the sectors within the group collectively posted growth of 0.8% in the third quarter, a turnaround from the 1.3% contraction in the second quarter.
The preliminary GDP estimates for the third quarter of 2024, including performance by sectors, sources of growth, inflation, employment and productivity, will be released in the Economic Survey of Singapore in November 2024.
1 The “others” segment comprises a diverse range of products including metals, timber & construction materials, household equipment & furniture as well as food, beverages & tobacco, among others.
© 2024 Institute of Singapore Chartered Accountants