Singapore in Recession Due to Covid-19

As of the second quarter of 2020, Singapore has had two consecutive quarters of economic contraction, marking the first time in over a decade the city-state has plunged into a recession.

According to data released by the trade ministry, growth fell 41.2% quarter-on-quarter, and year-on-year Singapore’s economy shrank 12.6% between April and June.

The ministry stated the large drop in the second quarter was primarily caused by “measures that were implemented from 7 April to 1 June to slow the spread of Covid-19, which included the suspension of non-essential services and closure of most workplace premises,” as well as “weak external demand amidst a global economic downturn.”

Singapore has one of the world’s most open economies and its sensitivity to external shocks allows the country to be used as a barometer for the health of global trade. This recession is another looming sign among many for the state of the world economy.