Chart of the Day: Services rescue Singapore as manufacturing falters

Financial services is a key growth pillar.

Modern services have become the key driver of Singapore's economy as trade-related sectors such as manufacturing falter.

This chart from the Monetary Authority of Singapore show that overall growth was supported by a buoyant modern services cluster and steady expansion in the domestic-oriented sectors, offsetting the deterioration in the trade-related industries.

The financial sector is a particularly strong economic driver, with growth surging by 34.1% quarter-on-quarter in Q1.

Notably, the fund management segment registered a strong increase in net fees and commissions towards the end of the year, while the insurance industry posted healthy gains from an uptick in life insurance sales.

In contrast, the trade-related industries languished amid persistent weakness in the external environment