Singapore Downgrades Economic Growth Forecast Over Contraction in Q2 GDP

On Tuesday, the Singapore government downgraded its economic growth forecast after its Q2 GDP came in at -3.3% QoQ. The revised estimates now stand at 0-1% for 2019, down from the previously estimated 1.5-2.5%.

Q2’s final GDP contraction of 3.3% has come in lower than the government’s advance estimates which were for a contraction of 3.4% for the period. However, this number is worse than economists’ expectations, which were for a contraction by 2.9%.

As global economic conditions deteriorate on account of rising trade tensions, Singaporean economy is also experiencing a slowdown, which some anticipate could turn into a recession soon if conditions don’t improve. Singapore’s central bank is due to conduct its next meeting in October, where markets widely anticipate it could announce policy easing measures to offset the economy’s contraction.

Just like the advance estimate, GDP grew at 0.1% YoY in Q2 2019, however, expectations were for a 0.2% rate of growth.