Singapore beat the economic performance expectations after it posted a 2.9 percent growth for the second quarter of the year, faster than the preceding period's 2.5 percent.
On a quarter-on-quarter basis, Q2 growth expanded by 2.2 percent, reversing the 2.1 percent contraction in Q1.
According to the Ministry of Trade and Industry (MTI) of Singapore, the headline growth is underpinned by the strong manufacturing sector, which expanded by 8.1 percent on the back of the electronics and precision engineering clusters.
The wholesale & retail trade also saw a slight expansion at 1.5 percent, faster than the 0.1 percent growth in Q1. This was supported by the wholesale trade and retail trade segments, with the former bolstered by machinery, equipment, and supplies.
The transport and storage sector clocked in a 3.5 percent growth, expanding its 4.4 percent expansion. The sector was supported by water transport segment which saw growth in container throughput and sea cargo handles at Singapore's ports.
In terms of the financial and insurance sector, the growth of 3.8 percent accelerates last quarter's 0.7 percent. The sector has seen commendable performances from the financial intermediation, fund, management, and insurance segments.
Meanwhile, the business services sector also recorded a decent growth at 1.8 percent. The land offices & business representative offices and other administrative & support services segments boost the sector's output.
The information & communications sector's growth of 2.1 percent in Q1 moderated to 1.8 percent over the past quarter due to the sharper pullback from the telecommunications segment. This was offset by the stellar output from the IT & information services segment.
Bucking the growth trend is the still dismal construction sector, which declined 5.3 percent in the quarter. The fall in both private and public sector construction is still to blame.
The food services & accommodation also contracted, down 2.2 percent. The sluggish sales volume of restaurants caused the food services segment to report deteriorating output for the quarter
Looking ahead, MTI said full-year growth forecast for the city-state could be between two to three percent, as the gross domestic product growth in the first half of the year scales up to 2.7 percent.