SINGAPORE - Singapore’s second quarter (Q2) GDP contracted by 41.2% from the previous quarter, bringing the country into recession as it battles the economic impact of the coronavirus (COVID-19) pandemic.
According to preliminary data from Singapore’s Ministry of Trade and Industry, on a year-on-year (yoy) basis the country’s GDP fell 12.6%. The plunge was especially affected by the construction sector, which slipped 95.6% in Q2.
As reported by Reuters, the Singapore government projects full-year GDP in the range of -7% to -4%—the lowest in its history.
“With the reopening of the Singapore economy, we should see a modest uptick in terms of economic activity in the third quarter,” OCBC Bank’s Head of Treasury Research and Strategy Selena Ling said on Tuesday (14/7).
“We think the third quarter will show some improvement, but will still be in contraction territory.”
So far the government has provided nearly S$100 billion worth of economic stimulus. The ruling People’s Action Party (PAP), which dominated last week’s election, has pledged to prioritise saving Singaporean jobs. (MS)