Singapore’s Economy Sees 19.7% Contraction

During the first quarter of the year, Singapore’s economy contracted nearly 19.7% that was the biggest quarterly contraction on country’s record.

According to some estimates the economy has contracted nearly 11.5% if it is compared with the same period last year.

Some government officials are expecting 6 % to 9% shrinkage in the GDP of the country during this year that is quite higher than the estimated 2 to 5%. This considerable shrinkage in the economy is being reckoned a cause of considerable decrease in country’s export in the current worldwide economic slowdown.

Trade and Industry Ministry officials say that the performance of the country’s economy was even worse that what it was being expected.

In its earlier forecast, the Ministry of Trade and Industry had shown concerns regarding weak first quarter, but according to some current estimates the earlier expectations will undershoot with a considerable margin.

There was nearly 29% drop in manufacturing output during the first Q of the year if compared to the same period last year and a considerable drop in exports was the biggest factor behind it.

The Trade Ministry says in this connection, “Country’s most of major trading partners are still undergoing a severe sort of recession and need not to expect any boost in the manufacturing sector in the coming days.”