MIT stated that Singapore economy grew by 3.6 per cent on a year-on-year basis in the fourth quarter, easing from the 5.5 per cent growth in the third quarter.
Singapore's economy grew slower than initially thought in the fourth quarter from the third, as manufacturing activity slumped in a sign of moderating momentum this year as exports of the city state's key tech products taper off. The contraction was mostly due to the weakness in private sector construction works.
Taking into account the global and domestic economic environment, MTI has maintained the 2018 GDP growth forecast at 1.5 to 3.5 percent.
The manufacturing sector expanded by 10.1%, which is pushed by growth in the electronics and precision engineering clusters.
The construction sector, on the other hand, shrank by 8.4% from 1.9% growth in 2016.
"The manufacturing sector is likely to continue to expand and provide support to growth in the overall economy", the ministry said in a statement.
The services producing industries grew by 2.8 per cent, higher than the 1.4 per cent growth in 2016. MTI stated that its central view is that growth will likely come in slightly above the middle of the forecast range, barring the materialisation of downside risks.
Growth for the full year was 3.6%, a tad higher than the earlier reported figure of 3.5%.
The ministry had, in its advance estimate, pegged manufacturing growth at 6.2% on-year.
The ministry stressed that the external demand outlook for Singapore is expected to be slightly weaker in 2018 as compared to 2017.
The external demand outlook is expected to be slightly weaker in 2018 compared to a year ago, the MTI said, adding there were also potential risks arising from U.
Singapore will announce its 2018 budget next week, with economists expecting the government to announce an increase to the goods and services tax to support future social spending.
Another weak spot is marine and offshore engineering, with local yards and firms producing oilfield and gas field equipment suffering from weak demand amidst still-low oil prices and excess capacity in the global offshore rig market.
The construction sector remained lacklustre, shrinking by 5 per cent on a year-on-year basis, easing from the 9.3 per cent contraction in Q3.