This marks a reversal from the earlier 0.8% expansion, spurring some economists from Oversea-Chinese Banking Corp (OCBC) and Citi to suggest that Singapore is heading into a technical recession, which is defined as two consecutive quarters of q-o-q contraction.
The Ministry of Trade and Industry (MTI) has narrowed Singapore’s GDP growth forecast for 2022 to 3% to 4%, from 3% to 5%, citing an unstable global economic environment that has “deteriorated further”.
Singapore’s economy grew by 4.4% y-o-y in the second quarter, slightly reduced from the advanced estimates of 4.8% released last month. While the 2Q growth came in faster than the preceding 1Q’s 3.8% y-o-y growth, on a q-o-q basis, it was a slight contraction of 0.2%.
