Singapore's GDP contracted 7 per cent on a year-on-year basis in the third quarter of 2020, an improvement from the 13.3 per cent contraction in the second quarter.
The improved performance of the Singapore economy came on the back of the phased re-opening of the economy following the Circuit Breaker implemented between April 7 and June 1.
In a press statement on Wednesday, October 14, Ministry of Trade and Industry (MTI) said the manufacturing sector grew by two per cent on a year-on-year basis in the third quarter, a reversal from the 0.8 per cent contraction in the previous quarter.
The construction sector shrank by 44.7 per cent on a year-on-year basis in the third quarter, extending the 59.9 per cent decline in the previous quarter. "Construction output in the third quarter remained weak on account of the slow resumption of construction activities due to the need for construction firms to implement safe management measures for a safe restart," MTI added.
The services producing industries contracted by eight per cent on a year-on-year basis in the third quarter, an improvement from the 13.6 per cent decline in the previous quarter. Aviation- and tourism-related sectors such as air transport and accommodation continued to see significant contractions, as global travel restrictions and sluggish travel demand brought air travel and visitor arrivals to a near complete standstill.
In addition, even though consumer-facing sectors such as retail and food services saw an improvement in performance as the Singapore economy exited the Circuit Breaker, they remained in contraction.
However, the finance & insurance and information & communications sectors recorded steady growth during the quarter. On a quarter-on-quarter seasonally-adjusted basis, the services producing industries expanded by 6.8 per cent, a reversal from the 11.2 per cent decline seen in the second quarter.