A man with a mask on taking a walk at Marina Bay Sands in Singapore’s central business district seen in the background on April 1, 2020.
Suhaimi Abdullah | Getty Images
SINGAPORE — Singapore’s economy contracted by 5.8% in the third quarter compared to a year ago — coming in better than initial estimates, the country’s Ministry of Trade and Industry said on Monday.
The Southeast Asian economy earlier estimated its economy would shrink by 7% year-on-year in the July-to-September quarter, according to official data.
On a quarter-on-quarter seasonally adjusted basis, Singapore’s gross domestic product or GDP grew by 9.2% in the three months ended September, a turnaround from the 13.2% contraction in the second quarter, the ministry said.
The Singapore economy is now expected to shrink between 6% and 6.5% in 2020 compared to a year ago, said MTI. That’s narrower than the previous official forecast range of 5% to 7% contraction for 2020.
With the local outbreak of Covid-19 largely under control, the Singapore economy is now “on the mend,” said economists from DBS, the country’s largest bank.
Like many economies globally, Singapore was badly hit by containment measures that suppressed economic activity for much of the second quarter. But the city-state has started to lift measures since early June, allowing most activity to resume.
“Despair and disappointment that had dominated the global backdrop for much of the year is gradually giving way to hope and optimism of a recovery as we head into 2021,” they wrote in a Singapore outlook report last week.
The DBS economists expect Singapore’s economy to contract by 6% this year, before rebounding to a growth of 5.5% in 2021.