Between 1Q2019 and 1Q2020, it was a barely noticeable dip of 0.3%; but for 2Q2019 to 2Q2020, the economy contracted 13.2% (see chart). Compared to the preceding quarter on a seasonally adjusted annualised basis, the contraction was an eye-popping 42.9%, as the two-month-long “circuit breaker” extracted its economic cost. The government estimates that the April-May lockdown shaved at least 2.2% off Singapore’s annual real GDP, which is some $11.3 billion when translated into dollar terms.
Clarice Tan is eagerly waiting for safe distancing measures to be lifted so she can patronise retail joints freely. “It’s been awhile since I went shopping. I have saved quite a bit while staying home, so I’m now ready to spend,” the 27-year-old civil servant told The Edge Singapore. With Singapore facing its worst-ever recession, more spending from the likes of Clarice might just help slow the deterioration in the ailing economy.
On Aug 11, the Ministry of Trade and Industry (MTI) estimated that Singapore’s economy might shrink between 5 and 7% this year, down from a previous forecast of between –4% and –7%. This projection “essentially means the growth generated over the past two to three years will be negated”, says Trade and Industry Minister Chan Chun Sing.
