Singapore is in technical recession

Singapore is in technical recession

Singapore got the money machine flowing but didn’t manage to overcome the pandemic’s effects.

Technical Recession: two consecutive quarters of negative economic growth.

The beginning of the week started with economic news from Singapore. For this year's second quarter, the government announced that the GDP shrank by 12.6%, compared to the same time last year. From the point of view of economists, it is "the steepest drop on record.”

In other words, Singapore entered a technical recession after the GDP shrank by 41.2% in the past three months, compared to the first three of 2020. After the first three months, the GDP fell only by 0.3% on a year-on-year basis. In the second quarter of 2020, the manufacturing expanded by 2.5%, while service-producing industries fell by 13.6%. The construction sector posted the biggest drop – 54.7%.

According to World Bank data, the value of Singapore's imports and exports is four times its GDP, which places it on the fourth-most traded dependent economy.

Specialists believe this happened due to the government's measures to reduce the spread of COVID-19. The measures implemented in April were in force throughout the entire quarter and started to ease in June.

The government expects a contraction of 4% to 7% for the whole year, which could be the most significant in Singapore’s history. The city-state could be in line with an economy rebound because of the size of the stimulus package adopted, which accounts for 20% of GDP ($70.4 billion). Economists are expecting a 10% recovery in 2021.

Check out our Featured Articles and Market News sections to be updated with the latest financial news!

Sources: cnbc.com, aljazeera.com

La información presentada aquí está preparada por CAPEX.com y no pretende constituir un asesoramiento de inversión. La información aquí se proporciona como una comunicación general de marketing con propósitos solo de información, y como tal, no se han preparado de acuerdo con los requisitos legales diseñados para promover la independencia de un estudio de inversión, y no está sujeto a ninguna prohibición para hacer frente con antelación a la diseminación de los análisis de inversión.

Los usuarios / lectores no deben confiar únicamente en la información presentada aquí y deben hacer su propia investigación / análisis leyendo también la investigación subyacente real. El contenido adjunto es genérico y no tiene en cuenta las circunstancias personales, la experiencia de inversión o la situación financiera actual.

Por lo tanto, Key Way Investments Ltd no aceptará ninguna responsabilidad por las pérdidas de los comerciantes debido al uso y el contenido de la información presentada en este documento. El rendimiento pasado no es un indicador confiable de resultados futuros.