A person with a masks on taking a stroll at Marina Bay Sands in Singapore’s central enterprise district seen within the background on April 1, 2020.
Suhaimi Abdullah | Getty Images
SINGAPORE — Singapore’s financial system contracted by 5.8% within the third quarter in comparison with a yr in the past — coming in higher than preliminary estimates, the nation’s Ministry of Trade and Industry mentioned on Monday.
The Southeast Asian financial system earlier estimated its financial system would shrink by 7% year-on-year within the July-to-September quarter, in line with official information.
On a quarter-on-quarter seasonally adjusted foundation, Singapore’s gross home product or GDP grew by 9.2% within the three months ended September, a turnaround from the 13.2% contraction within the second quarter, the ministry mentioned.
The Singapore financial system is now anticipated to shrink between 6% and 6.5% in 2020 in comparison with a yr in the past, mentioned MTI. That’s narrower than the earlier official forecast vary of 5% to 7% contraction for 2020.
With the native outbreak of Covid-19 largely below management, the Singapore financial system is now “on the mend,” mentioned economists from DBS, the nation’s largest financial institution.
Like many economies globally, Singapore was badly hit by containment measures that suppressed financial exercise for a lot of the second quarter. But the city-state has began to carry measures since early June, permitting most exercise to renew.
“Despair and disappointment that had dominated the worldwide backdrop for a lot of the yr is step by step giving approach to hope and optimism of a restoration as we head into 2021,” they wrote in a Singapore outlook report final week.
The DBS economists anticipate Singapore’s financial system to contract by 6% this yr, earlier than rebounding to a development of 5.5% in 2021.