Singapore's economy shrank 10.6% in Q1
The country's gross domestic product growth contracted 2.2% in the first quarter from a year earlier, according to advance estimate released by the Ministry of Trade and Industry on Thursday. That compared with 1.0% on-year growth in the fourth quarter. The contraction was also more than the median estimate for a 1.4% contraction in a survey of eight economists by The Wall Street Journal.
On a quarter basis, the economy shrank 10.6% on a seasonally adjusted and annualized basis in the January-to-March period. That compared with 0.6% on-quarter growth in the fourth quarter and the median estimate for a 4.4% contraction in a WSJ survey of seven economists.
Manufacturing output contracted 0.5% in the first quarter from a year earlier, after shrinking 2.3% in the fourth quarter.
Construction sector shrank 4.3% in the first quarter compared with 4.3% growth in the fourth quarter. Services output contracted 3.1% compared with 1.5% expansion in the previous quarter, the data showed.
Taking into account the weaker-than-expected performance of Singapore's economy in the first quarter, and the sharp deterioration in the external and domestic economic environment since February, Singapore's GDP growth forecast for 2020 is now expected to contract between 4.0% to 1.0% from an earlier projection of a contraction of 0.5% to a growth of 1.5%, the ministry said. ■