Singapore’s GDP contracts 5.8% in 3Q2020

THE Singapore economy contracted by 5.8% year-on-year in the third quarter of 2020 (3Q 2020), moderating from the 13.3% contraction recorded in the previous quarter, according to the republic’s Ministry of Trade and Industry (MTI).

In a statement issued today, MTI said the island city’s economy expanded by 9.2% on a quarter-on-quarter, seasonally-adjusted basis during the period, a turnaround from the 13.2% contraction in 2Q 2020.

The MTI said the improved performance of the economy came on the back of the phased resumption of activities in 3Q 2020 following the Circuit Breaker which was implemented from Apr 7 – June 1, 2020, as well as the rebound in activity in major economies during the quarter as they emerged from their lockdowns.

Taking some factors into account, including Singapore’s economic performance in the first three quarters of the year which stood at -6.5%, MTI said the 2020 gross domestic product (GDP) growth forecast for Singapore is narrowed to -6.5% to -6%, from -7% to -5%.

The republic’s economy is also projected to grow by 4% to 6% in 2021, it said.

The ministry said recovery of the Singapore economy in the year ahead is expected to be gradual, and will depend on a large extent on the global economy’s performance and whether Singapore is able to continue to keep the domestic COVID-19 situation under control. – Nov 23, 2020

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