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SINGAPORE: Singapore’s economy contracted 5.8 percent in a 2020 pandemic, preliminary data showed on Monday (Jan 4), although most industries saw some improvement in the fourth quarter of the year as COVID-19 restrictions were relaxed.
Singapore has been hit hard by the COVID-19 pandemic amid movement restrictions and border closures, with construction, aviation and tourism among the worst hit.
The government had estimated that Singapore’s gross domestic product (GDP) would contract between 6% and 6.5% in 2020.
GDP contracted 3.8 percent year-on-year in the last three months of the year, an improvement from the 5.6 percent drop in the third quarter, early estimates from the Ministry of Commerce and Industry showed on Monday ( MTI). (January 4).
On a seasonally adjusted quarter-on-quarter basis, Singapore’s GDP grew by 2.1% in the last quarter of 2020, following a 9.5% expansion between July and September.
READ: Despite the ‘exceptional tests’ of the COVID-19 year, Singapore may see the light at the end of the tunnel: PM Lee
Singapore entered a “circuit breaker” period in April to halt the spread of the COVID-19 outbreak, shutting down non-essential businesses.
It exited the breaker period in June, gradually reopening the economy and is now in Phase 3. It has also started a vaccination program, starting with healthcare workers.
The government has spent around S $ 100 billion in virus-related aid to support households and businesses. He expects Singapore to grow again this year, but warned that the recovery would be gradual.
READ: Singapore’s economy ‘turns the corner’, but recovery still a long way to go: Chan Chun Sing
HOW EACH SECTOR DID
Manufacturing continued to perform better, expanding 9.5% in the fourth quarter and 7.1% throughout the year.
The growth was primarily due to expansion in the electronics, biomedical and precision engineering groups, which outpaced declines in the general manufacturing and transportation engineering groups, MTI said.
However, on a seasonally adjusted quarter-over-quarter basis, it contracted 2.6 percent, after expanding 12.6 percent in the third quarter.
The services sector contracted 6.8% in the fourth quarter of last year and 7.8% for the entire year.
On a seasonally adjusted quarter-over-quarter basis, it grew 2.4 percent in the fourth quarter, softening the 6 percent gains it saw in the prior quarter.
Within the sector, the communications, finance, insurance and professional services group performed better than the industries related to commerce, hospitality and administration.
The construction sector was the worst performer, with a 33.7 percent contraction throughout the year. However, the construction industry appeared to be improving, with the contraction declining to -28.5 percent in the latest quarter from -46.2 percent in the prior quarter as more construction activities resumed.
On a seasonally adjusted quarter-on-quarter basis, the sector grew for the second consecutive quarter by 34.4 percent in the fourth quarter, extending the 39 percent growth in the third quarter.
