Coronavirus: Singapore plunges into recession as economy shrinks 41%
Singapore: Singapore plunged into recession in the second quarter as growth fell 41.2 per cent quarter-on-quarter with the trade-dependent economy hammered by the coronavirus, preliminary data showed Tuesday.
Year-on-year, the economy shrank 12.6 per cent between April and June, according to the data from the trade ministry, as strict curbs were imposed to fight the virus.
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.