Singapore in technical recession after GDP shrinks 41.2% in Q2 from preceding quarter due to COVID-19
SINGAPORE: Singapore has entered a technical recession after its economy contracted 41.2 per cent in the second quarter from the previous three months, dragged down by weak external demand and COVID-19 "circuit breaker" measures.
Several months of COVID-19 restrictions and workplace closures have battered Singapore's construction, retail and tourism sectors, with little sign of the pain abating.
The authorities have flagged that they expect Singapore's gross domestic product (GDP) to shrink between 4 and 7 per cent this year, as the coronavirus outbreak continues to pose severe strains on the economy.
On a quarter-on-quarter seasonally adjusted annualised basis, Singapore’s GDP shrank 41.2 per cent in the April to June period, deepening the 3.3 per cent contraction in the preceding three months, said the Ministry of Trade and Industry (MTI) in advance estimates on Tuesday (Jul 14).
This means that Singapore has entered a technical recession, defined by economists as two consecutive quarter-on-quarter contractions.
Economists polled by Reuters had expected a 37.4 per cent shrinkage.