S’pore Q2 Economy May Contract By 11.8%, Must Contain Covid-19 To Avoid Severe Recession

S’pore GDP May Contract By 5.8%In 2020, Sharp Contrast To 0.7% Growth Forecasted In March

Late last month, the Ministry of Trade and Industry (MTI) amended its previous forecast and predicted a 4-7% contraction in Singapore’s gross domestic product (GDP) for the year 2020.

S’pore Economy May Contract By 7% GDP, Could Be Nation’s Worst Recession Since Independence

On Monday (15 Jun), a separate survey by the Monetary Authority of Singapore (MAS) found that the Singapore economy is expected to contract by around 11.8% in the 2nd quarter as compared to last year.


The same poll also estimates a 5.8% contraction in the nation’s GDP, well within the 4-7% range announced by MTI earlier, and a sharp contrast to the 0.6% growth in a previous survey conducted in March.

Accommodation & food sector expected to have largest contraction

According to The Straits Times, 72.2% of the 23 economists and analysts surveyed cited a potential exacerbation of the Covid-19 situation in Singapore as the most crucial “downside risk” to Singapore’s growth.


Other concerns highlighted reportedly include escalations in trade tensions and increasing unemployment among workers.

The survey participants were also “pessimistic” about sectors hit hard by the pandemic, including accommodation and food services, wholesale and retail trade, as well as manufacturing.

The accommodation and food services sector is expected to have the largest contraction at 26%.

Worse recession can be avoided if outbreak brought under control

Though the survey findings might seem grim at this point, participants said that a worse recession can be avoided if the outbreak is brought under control.

Other factors such as the easing of global lockdown measures and financial stimulus packages were also cited as “upside risk” by a significant portion of those surveyed.

In better news, the survey found that Singapore’s is expected to grow by 4.8% for the whole of next year.

Hope containment of outbreak will be prioritised

While 2020 so far has been marked by negative events and bad news, we hope the containment of the outbreak will continue to be a priority for countries to avoid a graver recession.

Featured image from MS News

The Must Share News Team

Teamwork makes the dream work.

Recent Posts

Delivery Rider Calls Out Customer For S$0.90 Tip, Asks Them To Learn S’pore Tipping Rules

The video left people wondering if Singapore has tipping rules.

1 Feb 2023, 9:09 pm

SCDF Firefighters Don New Suits With Improved Flame Protection & Abrasion Resistance For Safety

The new suits will help increase visibility in low-light conditions.

1 Feb 2023, 8:57 pm

Warm Weather Of Up To 34°C May Return In Feb, Swap Sweaters For Singlets

Temperatures will range between 24°C and 33°C on most days.

1 Feb 2023, 8:29 pm

18-Year-Old Plans To Attack S’pore Army Camp & Mosque Gravesite, Detained Under ISA

He planned to pledge allegiance to ISIS in his NCC uniform.

1 Feb 2023, 7:59 pm

M’sian PM Criticised For Appointing Daughter As Adviser, Defends Decision & Says Her Role Is Limited

He has confirmed that his administration will co-operate with any investigation.

1 Feb 2023, 6:27 pm

Song Joong-Ki Met Wife In Italy After Filming ‘Vincenzo’, Couple Will Move Into S$21M Itaewon House

They have reportedly been living together since last year.

1 Feb 2023, 6:13 pm