SINGAPORE, Aug. 12 (Xinhua) -- The Singapore economy grew by 2. 4 percent on a year-on-year basis in the second quarter, moderating from the 4.8 percent growth in the previous quarter, the Ministry of Trade and Industry (MTI) said Tuesday.
On a quarter-on-quarter seasonally-adjusted annualised basis, the economy expanded by 0.1 percent, slower than the 1.8 percent growth in the preceding quarter.
The manufacturing sector grew by 1.5 percent year-on-year in the second quarter, a sharp slowdown from the 9.9 percent expansion in the preceding quarter. The deceleration in growth was largely due to a contraction in electronics output and slower growth in transport engineering output.
The construction sector grew 4.4 percent compared to the 6.4 percent growth in the preceding quarter. The slowdown was driven mainly by a fall in private construction output, reflecting weaker private residential building works and a decline in private commercial and industrial building works.
The wholesale & retail trade sector grew by 1.7 percent while transportation & storage sector slowed to 2.0 percent on a year-on- year basis. Finance & insurance sector expanded by 5.5 percent, largely similar to the 5.7 percent growth recorded in the previous quarter.
Looking ahead, MTI said the Singapore economy is expected to grow at a modest pace in 2014. Externally-oriented sectors such as
finance & insurance and wholesale trade are likely to support growth in the second half, in tandem with the modest pick-up in the global economy. Domestically-oriented sectors such as business services and information & communications are also expected to remain resilient. However, growth in some labour-intensive segments such as retail and food services may be weighed down by labor constraints.
Taking these factors into consideration, MTI said the 2014 growth for the Singapore economy has been narrowed to 2.5 to 3.5 percent, from the earlier projection of 2 percent to 4 percent.