By Gaurav Raghuvanshi

Singapore's economy contracted less than previously estimated in the third quarter as the key manufacturing and services industries held steady.

The economy contracted 2.0% from the quarter before on a seasonally adjusted and annualized basis in the July-to-September period, the Ministry of Trade and Industry said in a statement Thursday. That was slower than the 4.1% decline it provided in advance estimates released last month.

The island nation's economy grew 1.1% in the third quarter from a year earlier, compared with a prior estimate of 0.6% growth. The economy expanded 2.0% on-year in the second quarter.

The government said it expects Singapore's economy to grow between 1.0% and 1.5% for 2016, narrowing its prior forecast for growth of between 1% and 2%. The government expects GDP to grow between 1% and 3% in 2017.

"For the rest of the year, Singapore's GDP growth is expected to remain modest," the ministry said. Sectors such as electronics, information and communications and other services industries are likely to continue to support growth, while the wholesale trade and finance and insurance sectors could continue to face external headwinds, it added.

Manufacturing grew 1.3% on-year in the third quarter, compared with a 1.4% expansion in the second. Measured over the prior quarter, manufacturing activity declined 9.1% on a seasonally adjusted and annualized basis, compared with 2.1% growth in the second quarter, the data showed.

The services sector was flat in the third quarter, after growing 1.2% on-year in the second quarter.

Write to Gaurav Raghuvanshi at

(END) Dow Jones Newswires

November 23, 2016 19:21 ET (00:21 GMT)

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