SINGAPORE: Trade and Industry Minister Chan Chun Sing said on Monday (Nov 23) that Singapore still has a long way to go in its economic recovery, with the third quarter of gross domestic product (GDP) shrinking at a slower pace than in the previous quarter, even as it looks to be turning the corner.
The Ministry of Trade and Industry (MTI) reported earlier on Monday that it was adjusting Singapore’s growth forecast for 2020 again, following a 5.8 percent year-on-year contraction in GDP in Q3 – more than halving a record downturn of 13.3 percent in the previous quarter when the ‘circuit breaker’ COVID-19 was in operation.
The economy of Singapore is now forecast to shrink by between 6% and 6.5%, compared to a previous estimate of between 5% and 7%.
For the first time, policymakers have gave a snapshot of their economic outlook for 2021, a recovery to positive growth territory, with the economy planning to expand next year between 4 and 6 percent.
Mr. Chan said in his remarks on Monday morning that the latest economic statistics suggest that Singapore is on the right path, slowly but surely.”
But a lot of work still needs to be done, while the situation has improved.
Four factors influencing the pace of economic growth domestically and internationally were outlined by the Minister.
The first two factors that he said are under the influence of Singapore are its infection rates of COVID-19 and the willingness of its companies and staff to pivot and adjust to the new realities of a coronavirus environment. We would be able to resume more activities and increase our contacts with the rest of the world if we are able to continue to keep our infection rates low, said Mr. Chan. This will entail our people’s continued cooperation to adhere to the prevailing measures..