Mubasher: Singapore’s economy slowed down year-on-year in the first quarter of 2019, as the escalating trade war between the US and China and fading global demand dampened the export-dependent economy’s outlook.

However, it posted a solid annualised growth during the quarter compared with the prior one.

Singapore, seen as a bellwether for the health of the global economy, saw its gross domestic product (GDP) at 1.2% in Q1-19, compared with Q4-18, the Ministry of Trade and Industry said on Tuesday.

This marked the slowest growth momentum in nearly a decade.

However, the Asian nation’s GDP rose 3.8% in the first quarter of 2019 on an annualised basis, compared with the fourth quarter of 2018.

The GDP gain, which came well above the government’s earlier forecast of 2%, was attributed to a recovery in construction activity.

Despite seeing “pockets of strength” in the economy this year from the service sector, manufacturing activity is set to endure a “sharp slowdown” after two years of solid growth, the ministry said.

This was attributed to the main global risks, including the US-Sino trade conflict, weaker Chinese expansion and Brexit uncertainty.

Exports from the trade-reliant economy were curtailed by a slowdown in the global tech cycle and slower growth in China.