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 Pictures

SINGAPORE — Singapore’s economic system contracted by 5.8% within the third quarter in comparison with a 12 months in the past — coming in higher than preliminary estimates, the nation’s Ministry of Commerce and Trade mentioned on Monday.

The Southeast Asian nation earlier estimated its economic system would shrink by 7% year-on-year within the July-to-September quarter, in keeping with official knowledge. The third-quarter financial efficiency was additionally higher than the 13.3% year-over-year contraction recorded within the second quarter, the information confirmed.

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 improved efficiency of the Singapore economic system got here on the again of the phased resumption of actions within the third quarter following the Circuit Breaker that was applied from 7 April to 1 June 2020, in addition to the rebound in exercise in main economies throughout the quarter as they emerged from their lockdowns,” mentioned the ministry.

The “circuit breaker” refers back to the nation’s partial lockdown measures aimed toward containing the unfold of the coronavirus. Singapore has began lifting some restrictions since early June — which permit most actions to renew — however some measures stay, reminiscent of obligatory mask-wearing and a cap on gatherings.

The restoration of the Singapore economic system … will rely to a big extent on how the worldwide economic system performs and whether or not Singapore is ready to proceed to maintain the home COVID-19 scenario underneath management.

Singapore’s Ministry of Commerce and Trade

Here is how the totally different sectors within the city-state carried out within the third quarter:

  • Items-producing industries continued to do higher than the companies industries, led by manufacturing which grew 10% 12 months over 12 months;
  • However development actions shrank by 46.6% in comparison with a 12 months in the past — the third consecutive quarter of contraction;
  • Inside companies, the finance and insurance coverage sector — which has been a shiny spot — grew 3.2% 12 months over 12 months;
  • Transportation and storage contracted by 29.6% in contrast with a 12 months in the past, the worst-performing companies sector.

Return to progress in 2021

The Singapore economic system is now anticipated to shrink between 6% and 6.5% in 2020 in comparison with a 12 months in the past, mentioned the ministry. That is narrower than the earlier official forecast vary of 5% to 7% contraction for this 12 months, and can be the nation’s worst financial recession.

The Southeast Asian city-state is predicted to bounce again to develop by between 4% and 6% subsequent 12 months, in keeping with MTI.

“The restoration of the Singapore economic system within the 12 months forward is predicted to be gradual, and can rely to a big extent on how the worldwide economic system performs and whether or not Singapore is ready to proceed to maintain the home COVID-19 scenario underneath management,” it mentioned.

However with the native outbreak of Covid-19 largely underneath management, the Singapore economic system is now “on the mend,” mentioned economists from DBS, the nation’s largest financial institution.

“Despair and disappointment that had dominated the worldwide backdrop for a lot of the 12 months is progressively 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 count on Singapore’s economic system to contract by 6% this 12 months, earlier than rebounding to a progress of 5.5% in 2021.