The Singapore economy has entered into a technical recession for the first time since 2009, according to advance estimates from the Ministry of Trade and Industry (MTI).
A technical recession refers to two consecutive quarters of quarter-on-quarter contraction.
The economy has shrank by 41.2 per cent in the second quarter, based on a quarter on quarter seasonally adjusted annualised basis.
The construction sector contracted by 54.7 per cent on a year-on-year basis in the second quarter, a significant deterioration from the 1.1 per cent decline in the previous quarter.
The services producing industries contracted by 13.6 per cent on a year-on-year basis in the second quarter, steeper than the 2.4 per cent decline in the previous quarter.
Tourism-related sectors like accommodation and the air transport sector were severely affected were severely affected in the service industry.
Drop in GDP
The advance estimates for Q2 are computed largely from data in the first two months of the quarter, namely April and May 2020.
They are intended as an early indication of the GDP growth in the quarter and will be revised when more comprehensive data becomes available.
Singapore's GDP dropped 12.6 per cent year on year in the second quarter, according to advance data.
MTI said in a news release on July 14 that this was due to the Circuit Breaker (CB) measures, which included the suspension of nonessential services and closure of most workplace premises.
Singapore's GDP was projected to contract by 4 to 7 per cent for 2020, MTI said in an earlier statement in May.
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