Singapore (14 July 2020) – Singapore’s economy shrank 12.6% in the second quarter of the year, compared with the same quarter last year (year-on-year) battered by the COVID-19 pandemic.
Singapore’s economy measured by its gross domestic product (GDP) contracted as circuit breaker measures implemented from 7 April to 1 June, which saw the suspension of non-essential services and closure of work places and schools, were compounded by weak global demand brought about by the pandemic.
On a seasonally adjusted annualised basis, Singapore’s economy contracted 41.2% in the second quarter, the Singapore’s Ministry of Trade and Industry announced in a press release.
Construction Sector Hardest Hit in Q2
The construction sector was hardest hit contracting a whopping 54.7% in the second quarter, year-on-year.
Construction ground to a halt as a result of manpower disruptions and movement restrictions at foreign worker dormitories. On a seasonally adjusted annualised basis the construction sector contracted 95.6% in the second quarter.
The manufacturing sector saw a sliver of light growing 2.5% year-on-year, albeit slower than Q1’s 8.2% year-on-year. Growth in the second quarter was due to a surge in output of biomedical manufacturing cluster.
Weak external demand and workplace disruptions during the circuit breaker period weighed on output in the chemicals, transport engineering and general manufacturing clusters.
The services sector shrank 13.6% year-on-year, extending Q1’s contraction of 2.4%. On a seasonally adjusted annualised basis, the services sector shrank by 37.7% in Q2, extending the 13.4% decline in Q1.
Tourism-related sectors like accommodation and the air transport sector were severely disrupted by global and domestic travel restrictions, which brought visitor arrivals and air travel to a standstill.
MTI will release the preliminary GDP estimates for Q2, including performance by sectors, sources of growth, inflation, employment and productivity, in its Economic Survey of Singapore in August 2020.-/- www.halaluniverse.net
