Virus-hit Singapore plunges into recession as economy shrinks 41%
Virus-hit Singapore plunges into recession as economy shrinks 41%
SINGAPORE: Singapore plunged into recession in the second quarter as growth fell 41.2 percent quarter-on-quarter with the trade-dependent economy hammered by the coronavirus, preliminary data showed Tuesday.
Year-on-year, the economy shrank 12.6 percent between April and June, according to the data from the trade ministry, as strict curbs were imposed to fight the virus.
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![](https://i0.wp.com/www.manilatimes.net/wp-content/uploads/2020/07/Tiny-Singapore.jpg?resize=600%2C403&ssl=1)
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It marks the second consecutive quarter of contraction, meaning that the city state — which has one of the world’s most open economies — has entered a recession for the first time in more than a decade.
The massive second-quarter drop in GDP was due to “measures that were implemented from 7 April to 1 June to slow the spread of Covid-19, which included the suspension of non-essential services and closure of most workplace premises,” the ministry said in a statement.
It also attributed to the contraction to “weak external demand amidst a global economic downturn.”
Tiny Singapore, viewed as a barometer for the health of global trade, is highly sensitive to external shocks, and the gloomy figures are another ominous sign for the global economy.
AFP