Economic growth has slowed down for Singapore, according to the Ministry of Trade and Industry on July 12.

Singapore’s economy shrank 3.4 percent in April to June 2019 from the previous three months, and grew by only 0.1 percent year-on-year.

No recession yet

These figures have sounded alarm bells among Singaporeans.

In response, Deputy Prime Minister and Minister for Finance, Heng Swee Keat, wrote in a Facebook post on July 12 addressing the speculation of a recession:

Heng said the government is not expecting Singapore to enter a full-year recession yet, with some sectors doing better than others, such as information and communications, as well as construction.

Focus on medium and long term

While a technical recession could be inevitable, Heng reminded Singaporeans to focus on medium- and long-term challenges.

This is so as Singapore's workforce and economy remain resilient and can seize opportunities in time to come.

This includes helping businesses to transform, expanding into new markets and acquiring new skills.

A technical recession is defined as two straight quarters of quarter-on-quarter contraction.

Minister of Trade and Industry, Chan Chun Sing, likewise wrote in a separate Facebook post on July 12:

Heng also assured that the government is monitoring the situation closely and is working with employers and unions to make necessary preparations.