Singapore economy turns a corner but recovery will be gradual

Singapore economy

The economy expanded by 9.2 per cent on a quarter-on-quarter seasonally-adjusted basis in the third quarter.

This is a turnaround from the 13.2 per cent contraction in the second quarter during the Circuit Breaker.

On a year-on-year basis, our economy contracted by 5.8% in the third quarter. This is an improved performance compared to 13.3% contraction in the previous quarter.

In a Facebook post, Trade and Industry Minister Chan Chun Sing said that flattening the and business closure curves were as important as flattening the infection curve because the Government is deeply cognisant of the impact livelihoods have on lives.

Over the last few months, the Government took decisive actions to stem job losses and business closures, Mr Chan said.

Measures gave business precious time for businesses to regroup and pivot

“The that the Government put in place has given our businesses precious time to regroup and examine how they can pivot and remain relevant in a Covid-world,” said Mr Chan.

Mr Chan is happy to note that many business leaders and heeded the call to transform and pivot to new growth areas.

This is not easy, Mr Chan said. But he also assured all Singaporeans of government’s every step of the way ‘as long as they are willing to take the leap to transform’.

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Economic outlook

Risks and uncertainties remain in the global economy. Notwithstanding the positive news on developement and advancements in therapeutics and testing, the risk remains that periodic resurgence of infections can take place around the world.

Any re-imposition of lockdowns, even in a limited way, could dampen business and consumer confidence. This will pose a drag on the global economic recovery.

The Singapore economy is projected to grow by “4.0 to 6.0 per cent” in 2021. Recovery is expected to be gradual.

“How quickly our economy can recover and whether we have a brighter future ahead of us will depend on our ability to keep infection under control and adapt to a Covid-world. The Government will continue to ensure is in the best position to succeed.

We are at a critical juncture in our economic recovery. We have done well so far because of the strong partnership and trust between the government and its many stakeholders. I am confident that if we continue to work together and one another with the same grit and determination we have shown this year, we will be able to welcome a brighter 2021 together.”

– Chan Chun Sing –

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