[Asia Economy Reporter Jeong Hyunjin] Due to the impact of the novel coronavirus infection (COVID-19), Singapore's gross domestic product (GDP) in the second quarter of this year decreased by more than 40%, entering a recession.
According to Bloomberg News on the 14th, Singapore's Ministry of Trade and Industry announced that the second-quarter GDP fell by 41.2% compared to the previous quarter. This is the largest quarterly decline on record and is worse than Bloomberg's forecast of 35.9%. Compared to the same period last year, it decreased by 12.6%.
As a result, Singapore recorded negative growth for two consecutive quarters following the first quarter. Generally, when GDP declines for two consecutive quarters, it is classified as a technical recession. The media reported that this is the first time Singapore has entered a recession since the global financial crisis in 2009.
The Ministry of Trade and Industry explained that Singapore's trade-dependent economy suffered a huge blow due to the COVID-19 situation, and the impact of the lockdown measure called the "Circuit Breaker," which lasted from April 7 to June 1, was significant. In particular, the construction sector decreased by 54.7% year-on-year and 95.6% quarter-on-quarter.
The service sector also retreated by 13.6% year-on-year and 37.7% quarter-on-quarter as tourism-related industries and air transportation were hit by the COVID-19 crisis.
Chan Chun Sing, Minister of Trade and Industry, stated on social networking services (SNS), "It will be difficult to return to a recovery path within the next few months," adding, "External demand is continuously weakening, and as countries respond to the second and third waves of COVID-19 by implementing partial lockdowns or strong social distancing measures, recovery is expected to be slow or uneven."
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