Singapore faces recession winds – UOB
|Economist Barnabas Gan at UOB Group assessed the GDP prospects in Singapore for the current year.
Key Quotes
“Singapore’s GDP contracted 2.2% y/y (-10.6% q/q saar) in 1Q20. This marks the first y/y fall since the Global Financial Crisis (2Q09: -1.2% y/y), down from 4Q19’s GDP growth pace of +1.0% y/y (+0.6% q/q saar).”
“All three major GDP clusters, namely manufacturing (-0.5% y/y), construction (- 4.3% y/y) and services (-3.1% y/y), contracted in 1Q20 amid the exacerbation of the COVID-19 pandemic.”
“MTI has downgraded Singapore’s growth outlook to a range of -4.0% to -1.0%, down from a previous outlook of -0.5% to +1.5%. The ministry added that the balance of risks “is tilted to the downside”, which includes a more protracted-thanexpected global COVID-19 outbreak, severe and prolonged disruptions to the global supply chain and the possibility of financial shocks in 2020.”
“We downgrade Singapore’s full-year growth GDP in 2020 to contract 2.5% with downside risks, down from our previous estimate of +0.5%. The economy is expected to see four consecutive quarters of year-on-year contraction in 2020: 1Q20 (-2.2%), 2Q20 (-3.9%), 3Q20 (-2.8%) and 4Q20 (-1.2%), before seeing a recovery to 1.5% in 2021.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.