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GDP sees moderate growth at 3.4% in Q1

This is as MAS tightens monetary policy and raises inflation forecast.

Singapore's economy rose 3.4%, on a yearly basis in the first quarter of 2022, moderating from the 6.1% growth in the previous quarter, the country's Ministry of Trade Industry (MTI) said.

It also expanded by 0.4%, which is a slower growth compared to a quarter-on-quarter seasonally-adjusted basis, MTI also announced.

Read more: MAS tightens monetary policy amidst underlying inflationary pressures

In terms of sectoral performance, manufacturing industry expanded by 6% year-on-year in the first quarter of 2022, moderating from the 15.5% growth in the fourth quarter of 2021.

This was on the back of output expansions in all clusters except for the chemicals cluster. On a quarter-on-quarter seasonally-adjusted basis, the manufacturing sector declined by 1.2% in the first quarter, a reversal from the 6.3% growth in the previous quarter.

Meanwhile, the construction sector up by 1.8% year-on-year in the first quarter of 2022, falling short from the 2.9% growth in fourth quarter of 2021.

In absolute terms, the value-added of the sector remained 25.3% below its pre-pandemic level, whilst construction worksites continued to be hit by labour shortages.

On a quarter-on-quarter seasonally- adjusted basis, the industry expanded by 2.8% in the first quarter of 2022, a turnaround from the 2.1% contraction in the fourth quarter of 2021.

For the services sectors, sectors comprising the wholesale and retail trade and transportation and storage sectors logged a growth of 3.2% year-on-year in the first quarter, extending the 4.2% growth in the previous quarter.

Whilst the transportation and storage sector expanded, this was partly due to the impact of travel restrictions that bruised the air transport segment in the first quarter of 2021.

Overall, the value-added of this group of sectors in the first quarter of 2022 remained 1.2% below its pre-pandemic level. On a quarter-on-quarter seasonally-adjusted basis, the sectors grew by 1.2% in the first quarter of 2022, similar to the 1.3% growth in the previous quarter.

The information and communications, finance and insurance and professional services sectors collectively expanded by 5.3% on a year-on-year basis in the first quarter, moderating from the 6.6% growth in the previous quarter.

On a quarter-on-quarter seasonally-adjusted basis, the sectors in the group contracted by 2.0% in the first quarter, a pullback from the 2.5% expansion in the fourth quarter of last year.

The remaining group of services sectors, including accommodation and food services, real estate, administrative and support services and other services sectors, rose by 3% year-on-year in the first quarter of 2022, faster than the 1.6% growth in the previous quarter.

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