Singapore’s economy grew 4.1% year-on-year (y-o-y) in the third quarter of 2024, much faster than the 2.9% growth in the previous quarter, according to official advance estimates.

On a quarter-on-quarter seasonally adjusted basis, the economy expanded by 2.1%, stated the Trade and Industry Ministry on Oct 14.

This is faster than the 0.4% growth in the second quarter.

The growth acceleration came on the back of a manufacturing rebound.

The sector expanded by 7.5% y-o-y in the third quarter, after contracting 1.1% in the previous quarter.

Besides, the growth was led by output expansions across all manufacturing clusters, except for biomedical manufacturing.

The construction sector grew 3.1% y-o-y, slowing from 4.8% in the second quarter, with growth coming from an increase in public sector projects.

For the services industries, the information and communications, finance and insurance, and professional services sectors collectively grew 4.3%, although this was slower than the 5.4% growth in the second quarter.

Growth in these sectors was supported by expansion in segments like information technology and information services, and head offices and business representative offices.

In particular, the finance and insurance sector grew on the back of an expansion in activity across all segments, especially banking, activities related to financial services and fund management.

The wholesale and retail trade, as well as transportation and storage sectors, collectively expanded by 3.5% in the third quarter, extending the 3.9% growth in the second quarter.

The retail trade sector was the only segment that did not post growth in the third quarter.

Growth in the accommodation and food services, real estate, administrative and support services and other services sectors, was unchanged at 1% in the third quarter.

Furthermore, the government in August narrowed its 2024 growth forecast to 2% to 3%, the upper end of its previous forecast range of 1% to 3%.