Singapore's GDP grew by 4.1% in Q3 2024, extending the 2.9% growth in previous quarter

On a quarter-on-quarter seasonally adjusted basis, the economy expanded by 2.1%, faster than the 0.4% growth in Q2 2024.

Singapore’s Ministry of Trade and Industry (MTI) announced on 14 October 2024 (Monday) that based on advance estimates, the country’s economy grew by 4.1% on a year-on-year basis in Q3 2024.  

According to a press release by MTI, this result is an extension of the initial 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 Q2 2024.  

Here is a breakdown of the gross domestic product (GDP) in chained (2015) dollars over the past year (Q3 2023 to Q3 2024): 

Performance according to sector

Manufacturing 

The manufacturing sector grew by 7.5% year-on-year in Q3 2024, bouncing back from the 1.1% contraction in the previous quarter. This growth was driven by output increases across all manufacturing clusters, except for biomedical manufacturing. On a quarter-on-quarter seasonally adjusted basis, the sector grew by 9.9%, a sharp turnaround from the 1.2% contraction in Q2. 

Construction 

The construction sector grew by 3.1% year-on-year in the third quarter, down from the 4.8% growth seen in the preceding quarter. This growth was driven by an increase in public sector construction output. On a quarter-on-quarter seasonally adjusted basis, the sector's growth remained flat, compared to the 3.4% growth in the second quarter. 

Services 

Wholesale & retail trade and transportation & storage 

Among the services sectors, the wholesale & retail trade and transportation & storage sectors grew by 3.5% year-on-year in the Q3 2024, following the 3.9% growth in the previous quarter. All sectors in this group, except for the retail trade sector, experienced growth.  

The wholesale trade sector's growth was mainly driven by the machinery, equipment & supplies, and 'others' segments, while the transportation & storage sector saw growth supported by the water and air transport segments.  

In comparison, on a quarter-on-quarter seasonally adjusted basis, the wholesale & retail trade and transportation & storage sectors as a whole shrank by 0.6%, reversing the 2.1% expansion from the second quarter. 

Information and communications, finance & insurance, and professional services  

The group of sectors consisting of information & communications, finance & insurance, and professional services grew by 4.3% year-on-year in the third quarter, moderating from the 5.4% growth seen in the previous quarter. All sectors in this group expanded during the quarter. 

Growth in the information & communications sector was primarily driven by the IT & information services segment, while the professional services sector was largely supported by the head offices & business representative offices segment. Meanwhile, the finance & insurance sector grew due to increased activity across all segments, particularly in banking, activities auxiliary to financial services, and fund management.  

On a quarter-on-quarter seasonally adjusted basis, these sectors collectively expanded by 1.6%, improving from the 1.2% growth in Q2 2024. 

Accommodation & food services, real estate, administrative & support services and other services sectors 

The remaining group of services sectors (i.e., accommodation & food services, real estate, administrative & support services and other services sectors) grew by 1.0% year-on-year in Q3 2024, maintaining the same pace as the previous quarter. Within the group, growth was primarily driven by the accommodation and other services sectors. Specifically, the accommodation sector expanded in tandem with the continued recovery in international visitor arrivals.  

On a quarter-on-quarter seasonally adjusted basis, these sectors collectively achieved growth of 0.8% in the third quarter, marking a recovery from the 1.3% contraction experienced 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,” MTI shared.