SINGAPORE (Reuters) - Singapore’s recession deepened in the fourth quarter as the global financial crisis took its toll on manufacturers and the services sector, and the government warned the economy may shrink by as much as 2 percent this year. The economy contracted at a seasonally adjusted, annualized pace of 12.5 percent during the October-December quarter, following a revised 5.4 percent decline in July-September, data showed on Friday.
It was the third consecutive quarter of decline in gross domestic product and was worse than the most pessimistic forecast of nine economists polled by Reuters which was for a decline of 8.6 percent.
The government now expects Singapore’s GDP to come in between a decline of 2 percent and growth of 1 percent in 2009, lower than the previous forecast of -1 percent to +2 percent made in November.
But some economists are predicting an even deeper recession. “If we are correct, 2009 will mark the most severe recession in Singapore’s history, surpassing the Asian Financial Crisis (when GDP contracted 1.4 percent) and the 2001 tech recession,” said Citigroup economist Kit Wei Zheng, who predicts the economy would shrink 2.8 percent in 2009.
Read rest of article and watch CNA video here:
http://singaporeenquirer.sg/?p=891
It was the third consecutive quarter of decline in gross domestic product and was worse than the most pessimistic forecast of nine economists polled by Reuters which was for a decline of 8.6 percent.
The government now expects Singapore’s GDP to come in between a decline of 2 percent and growth of 1 percent in 2009, lower than the previous forecast of -1 percent to +2 percent made in November.
But some economists are predicting an even deeper recession. “If we are correct, 2009 will mark the most severe recession in Singapore’s history, surpassing the Asian Financial Crisis (when GDP contracted 1.4 percent) and the 2001 tech recession,” said Citigroup economist Kit Wei Zheng, who predicts the economy would shrink 2.8 percent in 2009.
Read rest of article and watch CNA video here:
http://singaporeenquirer.sg/?p=891
