Singapore’s Economy Contracts Annualized 4.1% in Third Quarter

shipping-lanes

Hi gang, Patrick here from www.SilverAg.com.sg where you can find some of the lowest gold and silver prices in Singapore.

As many of you already know, I’ve been suggesting that if you really want to know what’s going on in the world and how it affects Singapore as far as economics goes, check shipping numbers.

Anyone thats visits our shop knows this when they chit chat with us. These are the numbers that absolutely matter to you and me. Regarding checking shipping numbers, remember, shipping numbers are a look into the future. And the numbers I suggest you check can be found at HARPEX.  HARPEX is the sister to the Baltic Dry Index.

Harpex informs you on consumer goods. If ships aren’t being loaded up with consumer goods it means net importers such as the US are slowing. It will also mean net exporters will slow. As such, everything slows.

As things slow, prices have to drop. Others will choose to devalue their currency to be competitive.  Manufacturing and petroleum jobs usually are the ones affected the most. Why? If no one is buying, shipping slows, and manufacturing slows. After all, why make things if there is no buyer? Petroleum slows because as mentioned, when prices drop revenues drop, profits drop. In addition, so much of the world’s products are petroleum based.

Therefore you, our customers and friends, we know you were well informed and were not surprised. Shipping numbers already foretold what is going to happen in Singapore and in many parts of the world. We at SilverAg are hopeful that sharing shipping insights in our chit chats at our shop helped you to make decisions and continue to help you make decisions that are best for you and your family.

On to the featured article.

Full article, credits, and video here.

Singapore’s economy contracted in the third quarter from the previous three months, according to an advanced estimate from the government, more signs that the Southeast Asian financial and trading hub is struggling in the face of a global slowdown.

Key Points

  • Gross domestic product fell an annualized 4.1 percent on a quarter-on-quarter basis, compared with a revised 0.2 percent expansion in the second quarter, the Ministry of Trade and Industry said in a statement Friday.
  • The median estimate of 14 economists in a Bloomberg survey was for zero gains in GDP
  • Compared with a year earlier, GDP rose 0.6 percent in the third quarter, slower than the 1.7 percent median estimate in a Bloomberg survey of 20 economists

Big Picture

GDP growth in the export-driven economy has been under pressure since last year, mainly due to a slowdown in global trade and lower energy prices hurting the city-state’s oil and gas services industry. Government measures to cool the property market and curb the intake of foreign workers are undermining profits in some key industries, while manufacturing is struggling to gain traction, Joseph Incalcaterra, a Hong Kong-based economist with HSBC Holdings Plc, said before the data was released. The economy expanded 2 percent last year, the slowest pace since 2009, and economists forecast even lower growth this year.

Other Details

  • The services industry, which accounts for about two-thirds of the economy, contracted an annualized 1.9 percent in the third quarter from the previous three months
  • Manufacturing plunged an annualized 17.4 percent in the period
  • The advanced GDP estimates only include data from July and August. The government is scheduled to publish final GDP data in November.
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