Singapore Expects 2020 GDP to Contract 4%-7%, the Third Downgrade amid Pandemic

Singapore’s GDP growth for 2020 expected to contract between 4.0% and 7.0%, the third downgrade in economic forecasts, reported by the Ministry of Trade and Industry (MTI) on Tuesday.

 

The Singapore economy contracted by 0.7% on a year-on-year basis in the first quarter, which better than the official preliminary estimates of a 2.2% fall and 4.7% on a quarter-on-quarter, showed on official data.

 

The last projection of GDP growth has estimated a contraction range of 1.0% and 4.0%, but due to “the escalation of the COVID-19 outbreak worldwide had led to a significant deterioration in the external economic environment”, MTI trimmed its economic forecast to shrink by 4.0% – 7.0%.  

 

The ministry said in a statement that since March highlighting announcement on economic outlook, “the disruptions to economic activity in major economies around the world have been more severe than expected.”

 

“Notwithstanding the downgrade, there continues to be a significant degree of uncertainty over the length and severity of the COVID-19 outbreak, as well as the trajectory of the economic recovery, in both the global and Singapore economies,” it said.