Singapore releases first-quarter GDP advance estimates
Individuals sporting protecting surgical masks stroll alongside the Merlion Park, a significant vacationer attraction in Singapore.
Maverick Asio l SOPA Photographs l LightRocket by way of Getty Photographs
Singapore’s economic system contracted by 2.2% within the first quarter from a 12 months in the past, official preliminary information confirmed, and authorities additional downgraded their GDP forecast for 2020 as international locations all over the world battle the coronavirus outbreak.
The Ministry of Commerce and Business stated in a Thursday assertion that the Singapore economic system is now anticipated to shrink by between 1.0% and 4.0% this 12 months. That is worse than its forecast final month for a change of between -0.5% and 1.5% in annual gross home product.
The ministry stated the downgrade in financial forecast took into consideration “the weaker-than-expected efficiency of the Singapore economic system within the first quarter, and the sharp deterioration within the exterior and home financial atmosphere since February.”
“The broader forecast vary is to account for heightened uncertainties within the international economic system, given the unprecedented nature of the COVID-19 outbreak, together with the general public well being measures taken in lots of international locations to include the outbreak,” it stated within the assertion.
COVID-19 is the official title of the coronavirus illness that has contaminated greater than 400,000 individuals throughout 196 international locations and territories, in line with World Well being Group information. There have been over 18,000 deaths attributed to the virus globally, WHO information confirmed.
As confirmed instances climb, authorities all over the world have taken measures that embrace closing borders and shutting down workplaces and faculties to limit the motion of individuals so as to stem the unfold of the virus. The trade-off of these choices is a success to the economic system, with many analysts warning that many international locations may enter a recession this 12 months.
Singapore was one of many earliest international locations outdoors China to report instances of the coronavirus illness. The nation has banned the entry of international guests, shut bars and nightclubs, and restrict crowd sizes. Singapore recorded its largest every day leap of 73 confirmed instances on Wednesday, bringing its whole to 631 together with two deaths.
First-quarter GDP contraction
Singapore is one of the earliest to launch information on gross home product within the first quarter, offering a glimpse on how the continued coronavirus outbreak may have an effect on economies all over the world.
The Southeast Asian economic system contracted by 2.2% year-over-year within the first quarter and 10.6% quarter-over-year, stated the Ministry of Commerce and Business. The year-over-year contraction was the deepest Singapore has recorded for the reason that first quarter of 2009 throughout the international monetary disaster.
Economists polled by Reuters had anticipated the Singapore economic system to contract by 1.5% year-over-year and 6.3% quarter-over-quarter.
“We have been all being ready for a foul print and these numbers are clearly not nice,” Stephen Davies, chief government of Javelin Wealth Administration, instructed CNBC’s “Squawk Field Asia” after the info launch.
“Given the diploma to which we have seen such a major shutdown in financial exercise throughout the board, not simply in Singapore however elsewhere all over the world, these are the types of numbers we will be seeing globally as information begins to begin reflecting these constraints that now we have to placed on economies as we cope with the virus,” he added.
Singapore’s GDP studying launched on Thursday are preliminary estimates based mostly on information in January and February and meant as an early indication of the financial scenario within the first quarter, the ministry stated. Extra full information on Singapore’s gross home product within the first quarter can be launched in Might, it added.