Singapore: Q3 GDP contracts at a slower pace of 5.8%

For the third quarter, Singapore’s GDP shrank by 5.8% year-on-year, improving on Q2’s slump of 13.3%, with the outlook for 2021 looking optimistic.
By: | November 25, 2020
Topics: Compliance | Job Cuts | News | Singapore

This improvement in the third quarter came on the back of the phased re-opening of the economy following the Circuit Breaker implemented from April 7 to June 1, as well a rebound in activity in major economies during the quarter as they emerged from their lockdowns.  

The third quarter shrinkage was smaller than the ministry’s advance estimate of a 7% contraction.  For 2020 as a whole, the economy is expected to contract by 6%-6.5%, said the Ministry of Trade and Industry (MTI). 

By sector, the manufacturing sector grew the most at 10% year-on-year, reversing the 0.8 drop in Q2. The growth was led by the electronics, biomedical manufacturing and precision engineering sub-sectors. 

READ: Economic contraction slows down in Singapore

Other sectors that posted growth include finance and insurance (3.2% y-o-y) and information & communications (2.0% y-o-y). 

The outlook for next year is optimistic with the economy expected to cross into positive growth territory to expand between 4% and 6%. “On balance, 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 in the year ahead, the Singapore economy is projected to return to growth in 2021,” MTI said in a press release.