Singapore economy contracts

SINGAPORE: Singapore’s economy shrank in the second quarter of the year, official data showed Tuesday, as slowing demand from key export markets China and Europe hit manufacturing.
The 4.6 percent quarter-on-quarter contraction in April-June reversed a growth rate of 4.2 percent in the previous three months, according to advance estimates from the trade ministry based largely on two months’ data.
And despite the figures showing the economy expanded 1.7 percent year on year in the second quarter, private economists immediately downgraded their forecasts for the full year.
"The advance Q2 GDP estimate was weaker than market expectations," Rajiv Biswas, Asia Pacific chief economist at IHS, told AFP.
"The contraction... reflected declines in output across the board in manufacturing, services and construction, dampening the mood ahead of the SG50 celebrations," he said, referring to the 50th anniversary of Singapore independence next month.