SINGAPORE: Singapore's economy grew by 5.9 percent on a year-on-year basis in the third quarter of 2011.
On a quarter-on-quarter basis, the economy grew by 1.3 percent, a reversal from a contraction of 6.3 percent in the previous quarter.
Releasing the advance GDP estimates for the third quarter on Friday, the Ministry of Trade and Industry (MTI) said that the Singapore economy is expected to grow by around 5.0 percent in 2011.
Commenting on sectoral performances, MTI said the improved economic performance in the third quarter was mainly due to a pick-up in growth in the biomedical manufacturing cluster.
It said the manufacturing sector expanded by 13.2 per cent in the third quarter on a year-on-year basis, after contracting by 5.8 per cent in the preceding quarter.
The construction sector grew marginally by 0.4 per cent on a year-on-year basis in the third quarter, following the growth of 1.5 per cent in the preceding quarter. On a sequential basis, the construction sector contracted by 11.5 per cent, following two consecutive quarters of expansion. This was largely due to a decline in private sector building activities.
Services-producing industries grew by 3.6 per cent on a year-on-year basis, compared to the 4.0 per cent growth in the preceding quarter. The transport & storage and financial services sectors saw relatively lower levels of activity compared to the preceding quarter.
MTI said for the rest of the year, growth could be weighed down by the softening global economic conditions. In particular, the electronics cluster is expected to remain weak due to the easing of global electronics demand.
It added that sentiment-sensitive activities within the financial services sector could also be dampened by heightened economic and financial uncertainties.
As pharmaceutical output is expected to be higher in the near term compared to a year ago, the biomedical manufacturing cluster could provide some support to growth.