Flash figures released by the Ministry of Trade and Industry (MTI) indicated that the Singapore’s GDP shrank by 3.8 per cent on a year-on-year basis in the fourth quarter of 2020.
The estimated figure showed an improvement from the 5.6 per cent contraction recorded in the third quarter.
MTI released the figures on 4 January 2021.
On a quarter-on-quarter seasonally adjusted basis, the economy grew by 2.1 per cent, following the 9.5 per cent expansion in the third quarter.
Meanwhile Singapore’s economy contracted by 5.8 per cent for the whole of 2020.
Trade and Industry Minister Chan Chun Sing wrote in a Facebook post: “While we have seen our economy recover gradually following the end of the circuit breaker period, the recurrent waves of infection occurring globally signal the uncertainties that continue to plague the global economy. As an open and connected economy, any changes or shifts that take place globally will also affect us significantly.
“Although many global developments may be out of our hands, it does not mean that there is nothing we can do from our position in Singapore. Over the next few months, we will need to continue to minimise the spread of COVID-19 within Singapore and keep the domestic situation under control. We must also continue to press on with economic transformation to help our businesses cope with the new realities of a COVID-world and ensure that they are able to remain competitive not just within Singapore but also globally.”
The manufacturing sector expanded by 9.5 per cent on a year-on-year basis in the fourth quarter, extending the 10.8 per cent growth in the previous quarter.
MTI attributed the expansion to the output supported by the electronics, biomedical manufacturing and precision engineering clusters.
The construction sector shrank by 28.5 per cent on a year-on-year basis in the fourth quarter, improving from the 46.2 per cent contraction in the preceding quarter after the resumption of more construction activities in the final quarter of 2020 as compared to the third quarter.
Among the services sectors, the wholesale & retail trade and transportation & storage sectors shrank by 11.0 per cent in the fourth quarter, moderating slightly from the 11.9 per cent contraction in the previous quarter.
Meanwhile, the information & communications, finance & insurance and professional services sectors collectively grew by 0.2 per cent, a reversal from the 0.2 per cent contraction in the third quarter.
Mr Chan added: “It is with great effort and resilience that Singapore has managed to keep the situation under control in Singapore. However, we have seen that it can only take one breach or one act of complacency to undo all the hard work over the last year.
As Singapore continues to open up its borders and economy in order to sustain the livelihoods of our businesses and workers, I urge everyone to continue to play your part in keeping Singapore safe by abiding by the Safe Management Measures. If we continue to work together as one people towards the common objective of helping Singapore emerge stronger from the pandemic, I am confident that 2021 will be a better year for all.”
MTI will release the preliminary GDP estimates for the fourth quarter and the whole of 2020 in its Economic Survey of Singapore in February 2021.
