Singapore is in a recession; the worst since 1965.

It will take a while for the economy to recover.
Singapore is in a recession News Asia Today

Singapore is in a recession, and it is the worst it has been since the country’s independence back in 1963.

The country’s economy has contracted by 41.2% in the second quarter of 2020 according to Bloomberg report, significantly affected by the Circuit Breaker measures announced by the government.

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Several months of movement restrictions and workplace closures have battered Singapore’s construction, retail, and tourism sectors, with little improvements in sight for the short term.

Singapore is in a recession News Asia Today

Local authorities have also announced that Singapore’s GDP is expected to shrink between 4% – 7% this year, under the assumption that the pandemic situation does not continue worsening (ie: a second wave).

The construction sector was the worst hit so far, contracting 54.7% compared to the previous year’s.

The services sector shrank 13.6% from the previous year’s.

Manufacturing was the only sector to see growth, expanding by 2.5% compared to the previous year’s.

Singaporean Prime Minister, Lee Hsien Loong News Asia Today
Singaporean Prime Minister, Lee Hsien Loong.

To help alleviate the situation, the government has announced 4 support packages worth close to SGD $100 billion, approximately 20% of the country’s GDP.

These measures include wage support to businesses and cash payouts to adult Singaporeans.

Ummi Lulu
Journalist at News Asia Today. From Indonesia. I write about life, tech, and business related topics happening in Asia.