Singapore economy enters recession

Singapore plunged into a technical recession as the economy shrank 41.2 percent in the second quarter compared to the previous quarter

15, Jul. 2020

Photo by Shawn Ang on Unsplash
Photo by Shawn Ang on Unsplash

HANOI, VNA - Singapore plunged into a technical recession as the economy shrank 41.2 percent in the second quarter compared to the previous quarter.

According to the Ministry of Trade and Industry’s preliminary data, the gross domestic product (GDP) plummeted 12.6 percent, compared to the 10.5 percent forecast by economists.

The GDP slump marked the second consecutive quarter of contractions for Singapore. In the first quarter, the country posted a 3.3 percent decline.

A technical recession is defined as two consecutive quarters of quarter-on-quarter contraction. In the first three months of the year.

This is the first time Singapore’s economy has entered a technical recession in more than a decade.

The Singapore government expects full-year GDP in the range of -7 percent to -4 percent, the biggest downturn in its history.

The government has pumped in nearly 100 billion SGD (72 billion USD) worth of stimulus to blunt the impact of the pandemic. - VNA