Singapore raises third-quarter GDP; economy to expand in 2021

The economy of Singapore declined milder than what was initially estimated in the third quarter. The revised reading came after the city-state gradually lifted some of its coronavirus-driven restrictions, with authorities expecting an economic rebound in 2021.

Gross domestic product recorded a 5.8% drop year-on-year in the third quarter, the ministry of trade and industry said on Monday. The figure placed below the 7% contraction seen in the government’s initial reading. However, it came larger than the 5.4% contraction predicted by markets.

Currently, the government expects the economy to drop between 6.5% and 6%. This is compared to the initial forecast for a 5% to 7% decline as the country grapples with its worst recession in history. In addition to this, analysts foresee a brighter 2021 as it is expected to grow between 4% and 6%.