Singapore cuts economic forecast, on course for worst recession since independence
- The city state’s growth forecast now stands at a range of -7.0 per cent to -4.0 per cent, putting it on course to its worst contraction since 1964
- The biopharma sector is seen as among ‘the pockets of resilience’ in the economy, while industries such as manufacturing and construction will be hard hit
The city state’s growth forecast now stands at a range of -7.0 per cent to -4.0 per cent, down from the official prediction of -4.0 to -1.0 per cent in March.
The latest forecast range puts the country on course to its worst recession since the 3.2 per cent contraction it experienced in 1964, a year before it separated from Malaysia to become an independent nation.
In the 1998 Asian Financial Crisis it shrank by 2.2 per cent. In 2009 – at the height of the Great Financial Crisis – the republic’s economy grew by 0.1 per cent even though the official forecast was in the -9 to -6 per cent range.
Figures released on Tuesday showed the economy shrank by 0.7 per cent in the January to March quarter, an upwards revision from earlier flash estimates that put the figure at -2.2 per cent on a year on year basis.
“There remain significant uncertainties in the global economy. First, there is a risk that subsequent waves of infections in major economies such as the US and euro zone may further disrupt economic activity,” the Ministry of Trade and Industry said in a statement.