Singapore Q3 GDP Blazes Previous Expectations, MAS Tightens Coverage By Investing.com

By Ambar Warrick 

Investing.com– Singapore’s economic system expanded excess of anticipated within the third quarter, information confirmed on Friday, as a lift from building exercise and regular shopper spending helped offset a decline within the nation’s key manufacturing sector.

The Financial Authority of Singapore (MAS) additionally tightened financial coverage for the fifth time in a yr, because it struggles to manage rising inflation. The monetary authority stated in a press release it can elevate the vary inside which the is allowed to maneuver in opposition to foreign currency, and that extra tightening was warranted to maintain on a leash.    

Singapore’s rose 4.4% on an annual foundation within the three months to Sept 30, information from the Ministry of Commerce and Trade confirmed, excess of expectations for progress of three.4%. The studying was barely decrease than final quarter’s studying of 4.5%.

The economic system additionally expanded 1.5% from the earlier quarter, a reversal from the 0.2% contraction it skilled in Q2. The Singapore greenback reacted positively to the information, rising 0.4% in morning commerce. 

The info exhibits that the Singapore economic system has persevered regardless of headwinds from rising commodity imports and elevated inflation. A big a part of that is as a result of lifting of COVID-related restrictions on motion throughout borders.

Easing restrictions helped the motion of migrant staff into the island state, in flip benefitting building exercise. This additionally factored into sturdy shopper spending. 

Providers industries grew over 6% within the quarter, with the largest increase coming from spending on lodging and meals companies. 

Spending on meals, significantly eating places, additionally recovered sharply from COVID-linked disruptions seen final yr. 

Whereas progress within the manufacturing sector declined sharply, power in commerce helped bolster the island state’s economic system. Exports of equipment and industrial gear remained regular via the quarter, leaping a in August from final yr. The sector is anticipated to stay regular in September. 

Nonetheless, Singapore is fighting excessive inflation ranges, amid headwinds from rising commodity costs and provide chain points. The MAS forecast core inflation will common round 4% this yr, in comparison with a 5.1% studying in August.