Singapore’s Shock Contraction Sends Warning for World Trade




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Posted by Ed 12 days ago
Economy shrank annualized 3.4% last quarter on factory slump
 
 

An unexpected contraction in Singapore’s economy sent a warning shot to the world economy as simmering trade tensions wilt business confidence and activity.

Gross domestic product in the export-reliant city state shrank an annualized 3.4% in the second quarter from the previous three months, the biggest decline since 2012. That was worse than the 0.5% expansion forecast in a Bloomberg survey of economists and followed growth of 3.8% in the first quarter.

Like South Korea’s economy -- which already contracted in the first quarter -- Singapore is often held up as a bellwether for global demand given its heavy reliance on foreign trade. The bad data comes ahead of China trade figures later Friday and quarterly GDP numbers on Monday, which will likely show a clear weakening in the economy.

“Singapore is the canary in the coal mine, being very open and sensitive to trade,” said Chua Hak Bin, an economist at Maybank Kim Eng Research Pte in Singapore. The data “points to the risk of a deepening slowdown for the rest of Asia.”

 
 
https://www.bloomberg.com/news/articles/2019-07-12/singapore-s-economy-contracts-sharply-as-manufacturing-slumps?srnd=premium-asia 
 
 

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Ed 12 days ago

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