Singapore's Q1 GDP up 1.6% on year, full-year estimate unchanged

Singapore's gross domestic product grew 1.6 percent in the first quarter over the same period a year ago, a little better than the flash estimate of 1.5 percent but slower than three percent pace achieved in the fourth-quarter of last year.

On a seasonally-adjusted annualised quarter-on-quarter basis, GDP grew 1.1 percent in the quarter ended March 31 after a 0.4 percent increase in the fourth quarter.

The forecast for full-year growth remains unchanged from the revised 0.5 to 2.5 percent announced in mid-April.

Spurring growth in the first quarter were exports of chemicals and electronics.

Manufacturing saw growth of 6.5 percent on-year.

But the construction sector continued to shrink, contracting 12.3 percent in the period.

The services sector grew a modest 0.7 percent on-year, while financial services contracted 5.5 percent on-year.

The unemployment rate, a key source of concern, jumped to 4.5 percent from 4.2 percent at end December.

The outlook remains weak.

Forward looking indicators, which track economic activity three months ahead fell by 1.4 percent in the first quarter versus a rise of 1.2 percent in the fourth quarter of 2002.

The business sentiment survey showed that manufacturers in particular expect business conditions to remain lacklustre in the next six months.

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