- Gross domestic product (GDP) declined by annualized 41.2% from the previous three months
- Manufacturing, construction, and hospitality segments have been impacted significantly due to lockdown measures.
With more than 10 million people infected across the globe, the on-going COVID-19 pandemic shows no signs of abating. As the vaccine is yet to be found, lockdown measures remain the only effective way to curb its spread. Consequently, the lockdowns have also pushed major economies of the world into a recession.
As per the latest news, Singapore’s trade-reliant economy has rushed into recession as the lockdown measures have shuttered businesses and decimated retail spending. The Ministry of Trade and Industry said in the statement that Gross domestic product (GDP) of the nation reduced by a record 41.2% in the previous three months ending June.
The GDP decrease was worse than experts' expectations – which was a 35.9% decline in the quarter when the nation was under lockdown to reduce the spread of the COVID-19. GDP plunged by 12.6% in the second quarter compared to the previous year, versus a survey median of -10.5%.
The grim numbers for Singapore highlight the sweeping worldwide impact of the pandemic and point to an arduous road ahead. Most major economies in the world are already facing their sharpest downturn in decades.
A decrease in global trade has already hit the export-reliant manufacturing sector, while retailers have seen a record decrease in sales.
Meanwhile, these figures also put extra pressure on the ruling People’s Action Party, which had its most feeble performance ever in the previous week’s election. The government has already announced the package of USD 67 billion in stimulus to facilitate troubled households and businesses and to prevent an increase in retrenchments.
The recorded decrease was mainly due to lockdown measures implemented in the nation from April 7 to June 1 to reduce the spread of Covid-19. Manufacturing, construction, hotels, and restaurants are among the key areas that badly affected by the on-going COVID-19 pandemic.