One of the Richest Countries in the World With a Record Economic Decline
Singapore’s economy contracted by 41.2 percent in the second quarter of this year compared with the first due to the effects of the coronavirus pandemic. Such data was published by the Ministry of Trade and Industry of the country.
This was the second quarterly drop in a row, which means a technical recession. In the first quarter, GDP fell by 3.3 percent. In annual terms, the economy of one of the richest countries in the world experienced a record drop of 12.6 percent — the largest since Singapore declared independence in 1965.
Production decreased by 23.1 percent, construction volume fell by 95.6 percent in quarterly terms, and the decline in services amounted to 37.7 percent. At the end of the year, Singapore’s GDP may sink by 4–7 percent, which will be the largest reduction in state history.
In June, it became known that Singapore authorities allocated $2.5 billion in direct assistance to people against the backdrop of the coronavirus pandemic. 20 percent of GDP ($70.3 billion) was directed to support the country’s economy.
Author: Marko Vidrih
Featured image credit: Unsplash