Singapore’s economy expanded more than analysts estimated in the third quarter, adding to evidence that increasing global demand is fueling the island’s manufacturing pickup.
Gross domestic product rose an annualized 1.2 percent in the three months through September from the previous quarter, when it contracted a revised 0.1 percent, the trade ministry said in a statement today. The median estimate in a Bloomberg News survey of 12 economists was 0.8 percent. The central bank, which uses the island’s dollar to manage price pressures, said it will maintain a modest and gradual appreciation of the currency.
Singapore’s manufacturing output has benefited from a recovery in overseas demand, even as the government implements a 10-year plan to reduce reliance on cheap foreign workers and boost productivity which has caused a labor shortage and pushed up wage costs. Data released yesterday showed China’s exports to the U.S., Europe and Southeast Asia increased from a year earlier in September.