Yahoo Finance 
Singapore economy grew 2.2% in Q3, full-year growth seen at 3-3.5%
Singapore’s economy grew at a slower pace than initially expected, as the manufacturing sector faced lower demand and uncertainties rose on the intensifying trade dispute between the US and China.
Gross domestic product expanded by 2.2 per cent in July to September from a year earlier, slower than the 4.1 percent growth in the previous quarter, the Ministry of Trade and Industry (MTI) said in a statement on Thursday (22 November).
An initial estimate released on 12 October showed growth of 2.6 per cent year-on-year.
For the rest of the year, Singapore’s economic growth is “expected to moderate but remain firm”, Loh Khum Yean, Permanent Secretary, Ministry of Trade and Industry, said. The external demand outlook for the Singapore economy in 2019 is slightly weaker as compared to 2018, he said.
“There is the risk of a further escalation of the ongoing trade conflicts between the U.S. and its key trading partners, which could trigger a sharp fall in global business and consumer confidence,” Loh said. “Should this happen, global investment and consumption spending would decline, with adverse impact on economic growth.”
The MTI also revised its forecast for GDP this year to 3.0 to 3.5 per cent, from 2.5 to 3.5 per cent previously. The economy is expected to grow by 1.5 to 3.5 percent in 2019.
On a quarter-on-quarter annualised and seasonally adjusted basis, the economy grew 3 per cent, lower than an initial estimate of 4.7 per cent.
The median of 11 economists in a Reuters poll expected a 2.4 percent rise year-on-year and a 4.2 percent rise on a quarter-on-quarter basis.
Growth factors and inflation
Growth in the third quarter was mainly supported by finance and insurance, manufacturing and the business services sectors. The manufacturing sector, which makes up about one-fifth of the economy, saw growth slowing to 3.5 per cent in the third quarter, from 10.7 per cent in the second quarter.
The forecast for core inflation and monetary policy outlook remained unchanged from the outlook given in October, said Edward Robinson, assistant managing director of the economic policy group at the Monetary Authority of Singapore. The central bank in October said it expects core inflation to come in within the range of 1.5 to 2 per cent for this year.
The monetary authority last month warned that a trade war between the US and China, two of its top trading partners, is likely hurt the domestic economy in the coming months.
In a separate statement, Singapore’s non-oil domestic exports (NODX) grew by 8 per cent in 3Q, according to data released by Enterprise Singapore on Thursday. Total merchandise trade expanded by 14.7 per cent, up from the 10.2 per cent rise in the second quarter.
For 2018, total merchandise trade is expected to grow to 9.0 to 9.5 per cent, and 5.5 to 6.0 per cent for NODX. Considering downside risks such as trade tensions and with growth of key trade partners likely to ease, growth projections for 2019 are at 0 to 2.0 percent for both total merchandise and NODX.
