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Singaporean economy reportedly enters recession after pandemic

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Singapore

We have known that the fears of a recession worldwide were already feared by every expert around the world thanks to the fact that there was lockdown all over the place. This meant that the economy was on a standstill and if that is the case, we can’t even think about the economy’s growth. On the other hand, economies all over the world have shrunk but it looks like Singapore’s economy has shrunk the most. Because a new report reveals that Singapore’s economy has gone down by 40% quarter on quarter. This is a clear metric that tells you if any economy has gone into recession or not.

The important thing to note here is that it is already bad if any economy shrinks down by 40% year over year but it is worst if the same happens just between two quarters. Since the Coronavirus pandemic’s worst started in March this year, their economy has gone down and they have officially entered recession as well. Now that the recession has started in Singapore which was considered the most suitable place for business outside of the US, it is a concern for Asian stocks as well.

Most of the companies have their headquarters in Singapore and they will face the effects of recession meaning they will bring those effects to other parts of the world as well. If we look at the definition of a recession, it is known that a “technical recession is defined as two consecutive quarters of quarter-on-quarter contraction”. Also, analysts expected the Singapore economy to be down by 37% but this 40% data has also sent analysts into a spiral meaning things are even worse than expected. The main reason why Singapore’s economy has shrunk so much is that its construction sector “plunged 54.7%” which is one of the main contributors to their economy

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