Singapore narrows forecast of 2020 GDP contraction

Source: Xinhua Published: 2020/11/23 13:43:50

People dine inside a dome, an installation which helps prevent the spread of the COVID-19 epidemic, at Capitol Singapore Outdoor Plaza, Singapore, on Oct. 21, 2020. (Photo by Then Chih Wey/Xinhua)

Singapore's Ministry of Trade and Industry (MTI) said on Monday that it narrowed the gross domestic product (GDP) growth forecast for 2020 to "-6.5 to -6 percent" from "-7 to -5 percent."

The ministry said that it considered the global and domestic economic environment, as well as the performance of the Singapore economy in the first three quarters of this year, before adjusting the GDP growth forecast.

It said that Singapore's GDP declined by 6.5 percent year-on-year in the first three quarters this year.

Meanwhile, the MTI said the Singapore economy is projected to grow by "4.0 to 6.0 percent" in 2021, given the improved growth outlook for key external economies, as well as a further easing of global travel restrictions and domestic public health measures that is expected next year.

But the ministry added that the recovery is expected to be gradual, and will depend to a large extent on how the global economy performs and whether Singapore is able to continue to keep the domestic COVID-19 situation under control.

Besides, the MTI said the Singapore economy in the third quarter expanded by 9.2 percent on a quarter-on-quarter seasonally-adjusted basis, but contracted by 5.8 percent on a year-on-year basis. These are better than the previously announced figures that are based on advance estimates.

The ministry said on Oct. 14 that Singapore's GDP in the third quarter grew 7.9 percent quarter-on-quarter but fell 7 percent year-on-year. These advanced GDP estimate figures were computed largely from data in the first two months of the quarter, and are subject to revision when more comprehensive data become available.

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