Singapore’s economy has been growing much more slowly than people thought

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Singapore’s economy continued to splutter in the June quarter, growing at a far slower pace than expected.

According to advanced estimates offered by the Singaporean government, the economy grew 0.4% in seasonally adjusted annualised terms, missing forecasts for an expansion of 1.1%.

Despite the large miss it was still a significant improvement on the 1.9% contraction reported in the March quarter, and ensured that the economy avoided falling into recession.

From a year earlier, GDP expanded by 2.5%, unchanged from the previous quarter but below the 2.8% rate expected.

The government said that manufacturing expanded 8% over the 12 months, while services grew by a smaller 1.7%. That was offset by weakness in construction which fell 5.6% over the same period

This table shows the recent trend.

Source: Singapore Ministry of Trade and Industry

The government will release updated figures in its Economic Survey of Singapore that will be released in August.