Singapore’s economic contraction milder in third quarter

Singapore’s economic downturn eased in the third quarter as the city-state lifted coronavirus-driven restrictions. More so, in its next convocation, the central bank is expected to retain its current monetary policy.

Gross domestic product is expected to record a 6.8% contraction from the same period a year ago, according to 11 economists who participated in a Reuters survey. This marks the index’s third straight month of decline, with the economy recording a 13.2% drop from April to June- its sharpest decline on record.

On an annualized and seasonally adjusted basis, GDP may record a 35.3% growth quarter-on-quarter from July to September. The expected expansion is a complete reversal from the 42.9% drop seen in the second quarter.

All 14 economists expect the Monetary Authority of Singapore (MAS) to retain its rate policy. While economists believe that the economy already recovered, the rebound will still be gradual.