Singapore's Economy Shrank at a Faster Pace in 2Q

Singapore's economy contracted faster in the second quarter than previously estimated amid continued fallout from Covid-19, revised data showed Tuesday.

The economy shrank 42.9% in the quarter from a year earlier, compared with the prior estimate for a 12.6% contraction, due to domestic measures to slow the virus combined with weak external demand, the Ministry of Trade and Industry said.

The wholesale-and-retail trade sector shrank 8.2% in the second quarter, worsening from a 5.6% decline in the first quarter, the ministry said. Transportation and storage contracted 39.2% compared with the first quarter's 7.7% drop, while accommodation and food services dropped 41.4%, sharper than the 23.8% in the preceding quarter.

The information-and-communications, manufacturing, construction and business-services sectors all contracted in the second quarter. The finance-and-insurance sector was the only one to expand although growth moderated to 3.4% from 8.3%.

The economy shrank 13.1% on a seasonally adjusted and annualized basis in the April-to-June period over the previous three months, the ministry said. That compared with the initial estimate for a 41.2% contraction.

The ministry expects Singapore's 2020 GDP to contract by 7.0% to 5.0%. That compares with its prior projected range of minus 7.0% to minus 4.0%.

The outlook has slightly weakened since the prior projection was made in May due to the subdued global economic environment as the pandemic continues, the ministry said.

Write to Ronnie Harui at ronnie.harui@wsj.com

Corrections & Amplifications

This article was corrected on August 11, 2020 because the original incorrectly said the economy shrank 13.1% on a seasonally adjusted and annualized basis. Singapore's economy shrank 42.9% on a seasonally adjusted and annualized basis in the April-to-June period over the previous three months.

Singapore's economy shrank 42.9% on a seasonally adjusted and annualized basis in the April-to-June period over the previous three months. "Singapore's Economy Shrank at a Faster Pace in 2Q" at 1301 GMT incorrectly said the economy shrank 13.1% on a seasonally adjusted and annualized basis.


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  08-10-20 2101ET
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