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Singapore announced tuesday that its economy had contracted more than expected and had cut its economic forecast for the whole of 2020.
Singapore’s economy contracted by 42.9% at the time of the 2020 quarter compared to the previous quarter on a seasonally adjusted, the Ministry of Trade and Industry said. The updated figure was worse than the official initial estimate published last month and showed that the Southeast Asian country had entered a technical recession.
The estimate, based largely on the April and May data, showed that the economy contracted by 41.2% in the quarter of the moment compared to the last 3 months.
On an annual basis, the country’s gross domestic product fell by 13.2% in the quarter ended June 30, according to the ministry. This is worse than the previous estimate of a year-on-year contraction of 12.6% and a year-on-year decrease of 0.3% in the first quarter.
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Much of Singapore’s economy closed in early April when the country entered a partial blockade, which the government described as a “decisive factor,” to stem the spread of coronavirus. Some of the restrictions have been relaxed since early June, allowing the economy to reopen.
“The fall in GDP due to the Circuit Breaker Measures (CBs) implemented from 7 April to 1 June 2020 to curb the spread of COVID-19 in Singapore, as well as a weak external appeal in the context of a global economic slowdown caused by the COVID19 pandemic,” the ministry said in a statement.
Covid-19 is the official call for coronavirus disease. In Singapore, there were more than 55,000 infections and 27 virus-like deaths, according to the knowledge of the Ministry of Health. Most other inflamed people have recovered, with 5,656 cases still “active” on Monday, the ministry of fitness said.
The partial blockade halted almost all of the structure’s activity in the quarter of a moment, resulting in a year-on-year drop in the sector of 59.3% in the current quarter, according to the knowledge of the Ministry of Trade and Industry. An epidemic among migrants living in dormitories, many of whom worked in structure, added to the weakness of the sector, the ministry said.
Here’s how the sectors behaved in the April-June quarter:
The Ministry of Trade and Industry has revised its year-round forecast for Singapore to an economic downturn of between 5% and 7% in 2020. Previously, I expected the country’s GDP to fall from 4% to 7%.
“The outlook for Singapore’s economy has weakened since May,” the ministry said.
He cited 3 by the deterioration of the outlook:
“However, there are several places of strength in Singapore’s economy,” the ministry added. He explained that semiconductor demand has been more potent than expected, while the biomedical production group is also expected to continue to grow.
However, the branch said there is still a lot of uncertainty in the short term.
“Despite the reduction in the forecast range, significant uncertainty remains about how COVID-19 will evolve in the coming quarters and, as a result, the economic recovery trajectory in the global and domestic economies.”
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