Singapore is experiencing a worse than forecast recession on account of the coronavirus pandemic, with the lockdown extending via most of Q2 2020.
Singapore is experiencing a worse than forecast recession on account of the coronavirus pandemic, with the lockdown extending via most of Q2 2020. Information launched by the federal government reveals that Singapore’s financial system contracted by 13.2% YoY in the course of the second quarter of the 12 months, extra extreme than projections for a 12.6% decline.
On a quarterly foundation, the contraction in Q2 stood at 42.9%, worse than the federal government’s preliminary estimate of a 41.2% contraction. Nonetheless, the figures got here in keeping with economists’ forecasts.
Singapore’s authorities has revised its estimate for annual GDP, anticipating the financial system to contract by anyplace between 5% and seven% this 12 months, in opposition to its earlier estimates for a 4-7% contraction. Regardless of the lockdown measures being eased within the metropolis state, with worldwide journey restricted and social distancing norms being adopted, a rebound will take rather a lot longer than beforehand anticipated.
With the financial system contracting for the second consecutive quarter, Singapore is formally in a state of technical recession. To counter the financial impression of the pandemic, Singapore’s central financial institution had resorted to financial easing again in March whilst the federal government rolled out SGD 100 billion value of fiscal stimulus measures.