Singapore economy rebounds after lockdown but virus impact still felt

Bangkok, Nov. 23, (dpa/GNA) – Singapore’s economy rebounded better than expected during the July-September period, according to the Ministry of Trade and Industry, posting 9.2 per cent quarter-on-quarter growth.

The ministry on Monday revised upwards an earlier estimate of 7 per cent gross domestic product (GDP) growth for the third quarter, which it said “came on the back of the phased resumption of activities” after a two-month coronavirus lockdown that ended on June 2.

The second quarter saw the wealthy city-state’s GDP shrink by a record 13.2 per cent after many businesses were forced to close and as lockdowns were imposed in Singapore’s trading partner nations.

Year-on-year, Singapore’s economy contracted by 5.8 per cent in the third quarter, the ministry said, suggesting that impact of coronavirus-related curbs were still being felt and that the economy is struggling to regain pre-pandemic output.

While sectors such as electronics and pharmaceuticals fared relatively well as the pandemic fuelled demand, Singapore’s third quarter rebound was curtailed in part by a “continued slump in air passengers” caused by “ongoing global travel restrictions and sluggish air travel demand,” the ministry said.

Singapore and Hong Kong on Saturday postponed by two weeks a scheduled reopening of quarantine-free travel between the two finance hubs, citing a recent resurgence of coronavirus case numbers in Hong Kong.

GNA