A man wearing a mask on a trip to Marina Bay Sands in Singapore’s Central Business District seen in the background on April 1, 2020.
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SINGAPORE – Singapore’s economy fell by 5.8% in the third quarter compared to a year ago ̵
The Southeast Asian country previously estimated that the economy would shrink by 7% year-on-year in the quarter from July to September, according to official data. The data in the third quarter were also better than 13.3% compared to the previous year, which was recorded in the second quarter.
On a seasonally adjusted quarter-on-quarter basis, Singapore’s gross domestic product or GDP grew by 9.2% in the three months ending September, a turning point from the 13.2% decline in the second quarter, the ministry said.
“The improved performance of the Singapore economy came in the wake of the gradual resumption of activities in the third quarter following the Circuit Breaker, implemented from April 7 to June 1, 2020, as well as a recovery in activity in major economies in the quarter when they arrived. out of their lockdowns, ”the ministry said.
The “switch” refers to the country’s partial lockdown measures aimed at limiting the spread of coronavirus. Singapore has begun lifting some restrictions since early June – allowing most activities to resume – but some measures remain, such as mandatory masking and a ceiling on gatherings.
This is how the various sectors in the city state work in the third quarter:
- Commodity manufacturing industries continued to outperform the service industry, led by manufacturing, which grew 10% year over year;
- But construction activity fell by 46.6% compared to a year ago – the third consecutive quarter;
- In services, the financial and insurance sector – which has been a bright spot – grew 3.2% year over year;
- Transport and storage fell by 29.6% compared to a year ago, the service sector that works best.
Return to growth in 2021
The Singapore economy is now expected to shrink between 6% and 6.5% in 2020 compared to a year ago, the ministry said. It is narrower than the previously official expected range of 5% to 7% contraction this year and would be the country’s worst economic recession.
The Southeast Asian city-state is expected to bounce back and grow by between 4% and 6% next year, according to MTI.
“The recovery of the Singapore economy in the coming year is expected to be gradual and will largely depend on how the global economy performs and whether Singapore is able to continue to keep the domestic COVID-19 situation under control. , “it said. said.
But with the local outbreak of Covid-19 largely under control, the Singapore economy is now “on track”, said economists from DBS, the country’s largest bank.
“The despair and disappointment that had dominated the global background for much of the year is gradually giving way to hope and optimism for a recovery as we enter 2021,” they wrote in a Singapore outlook report last week.
DBS economists expect Singapore’s economy to contract by 6% this year before recovering to 5.5% growth in 2021.