Singapore is facing a heightened risk of entering a technical recession in the second quarter as external challenges continue to impact the economy. The city-state saw a 0.4% decline in the economy during the first quarter compared to the previous three months, marking a reversal from the 0.1% growth in the fourth quarter of 2022. Singapore last experienced a technical recession in the second quarter of 2020 due to the Covid-19 pandemic.
Despite year-on-year growth of 0.4% between January and March, the nation’s reliance on trade has been affected by a global economic slowdown, high inflationary pressures, and a downturn in the semiconductor industry. Singapore’s non-oil domestic exports have suffered a seven-month downturn, with forecasts for 2023 downgraded after a weaker-than-expected first quarter.
Shivaan Tandon from Capital Economics said…
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