Thursday, Jan 26, 2023
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Singapore sees slow economic progress from recession: MAS

Singapore economy_IFM_Image
The economy contracted by around 7 percent in the third quarter of the year

The process of economic recovery for Singapore from the coronavirus pandemic will be

slower than the previous recessions, according to the Monetary Authority of Singapore

(MAS).

Singapore’s economy contracted by around 7 percent during the third quarter. The

economy however contracted by 13.2 percent in the second quarter. The reduction in

the contraction rate is based on the resumption of economic activities as the city-state

relaxed lockdown measures introduced earlier to stop the spread of the coronavirus.

“Some pockets of the economy, particularly the travel-related and some contact-

intensive domestic services, are not expected to recover to pre-pandemic levels even by

the end of next year,” the central bank said in its report.

MAS reiterated the government’s forecast for the economy to shrink by a record 5

percent to 7 percent this year because of the coronavirus pandemic. According to MAS,

the economy will post above-trend growth for 2021 due to the effects of the low base in

2020.

“The nature of the Covid-19 shock has rendered this crisis to be deeper and likely more

prolonged than past recessions. Furthermore, the lack of wide-scale vaccination in

Singapore and abroad raises threats of repeated outbreaks that will continue to

generate economic uncertainty, hampering a more decisive recovery,” the central bank

added.

According to the Singapore Exchange Limited (SGX), the city-state’s gross domestic

product is forecasted to contract between 5 percent to 7 percent. The forecast is most

likely based on the ill-performing travel, construction, and retail sector in the city-state.

Construction activities in Singapore decreased by 44.7 percent in the third quarter of

2020 compared to the same period in 2019. The drop is attributed to sluggish

resumption of activities due to safe management measures.

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