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Singapore’s economy fell into recession in the last quarter when a prolonged lockdown hit businesses and retail spending.
Economic growth in the city state slowed by 41.2% compared to the previous quarter, the largest contraction recorded in the country.
Authorities predict it will be Singapore’s worst recession since independence from Malaysia in 1965.
The figures reveal the seriousness of the recession caused by viruses that is facing worldwide.
Official data showed that Singapore’s second quarter gross domestic product (GDP) contracted 12.6% yoy.
As one of the first countries to publish growth data for the period when many economies were blocked, Singapore’s figures give an idea of how the ongoing pandemic could affect economies around the world.
Worse-than-expected figures followed a 2.2% year-on-year drop in GDP for the first quarter of 2.2% and a quarterly drop of 10.6%.
The deepening of the recession also indicates that the pandemic may have impacted Singapore’s economy more than many of its Asian counterparts.
The drop in world trade has hit manufacturers that depend on the country’s exports, while activity in the construction industry stagnated and retailers have seen sales drop at a record rate.
In contrast, Japan’s GDP contracts about 20% in the second quarter of the previous three months, while this week’s data may show that the Chinese economy has now returned to growth.
The Singapore data puts more pressure on the country’s ruling People’s Action Party, which last week had its weakest electoral performance since independence 55 years ago.
The government has already pledged around $ 67 billion (£ 53 billion), or almost 20% of Singapore’s GDP, in stimulus measures to support struggling businesses and households.
Singapore began to relax its closure measures, known as the local circuit breaker, on June 1.
The city state entered phase two of reopening its economy on June 19, allowing most stores and restaurants to resume business, although social distancing rules remain in effect.
