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Covid pandemic sends Singapore’s financial system to its worst ever recession in 2020

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A girl, sporting a face masks as a safety measure in opposition to the unfold of the COVID-19 novel coronavirus, walks alongside the promenade at Marina Bay in Singapore on Could 4, 2020.

Roslan Rahman | AFP | Getty Photos

SINGAPORE — Singapore’s financial system contracted by lower than anticipated in 2020 as exercise picked up additional within the fourth quarter following the easing of Covid-related restrictions, advance estimates by the Ministry of Commerce and Trade confirmed on Monday.

The Southeast Asian financial system contracted by 5.8% in 2020 in contrast with the earlier 12 months, mentioned the ministry. That is higher than the official forecast for an annual contraction of between 6% and 6.5%.

Within the last quarter of final 12 months, the Singapore financial system shrank 3.8% in contrast with a 12 months in the past — an enchancment from the revised 5.6% year-over-year contraction within the third quarter, the ministry mentioned.

On a quarter-on-quarter seasonally-adjusted foundation, Singapore’s gross home product or GDP grew 2.1% within the fourth quarter — slowing from 9.5% progress within the earlier three months, it added.

Singapore’s trade-dependent financial system was hit by a plunge in exercise final 12 months as nations globally imposed lockdown measures to gradual the unfold of Covid-19.

Domestically, Singapore applied “circuit breaker” measures in early April and began lifting them since early June — though some measures have remained, equivalent to obligatory mask-wearing in public locations. That allowed most financial exercise to renew within the city-state.

This is how the totally different sectors carried out within the fourth quarter, in accordance with the official estimates:

  • Items-producing industries grew 3.3% in contrast with the earlier 12 months, with manufacturing increasing by 9.5% 12 months over 12 months;
  • The development sector recorded its fourth-straight quarter of contraction, however the 28.5% year-on-year contraction was higher than the earlier quarter’s;
  • Providers-producing industries additionally continued to shrink for the fourth-straight quarter, recording a 6.8% year-on-year contraction.

The advance estimates for the fourth quarter are largely based mostly on knowledge from October and November. The commerce and trade ministry will launch an replace to the information in February.