Singapore’s Ministry of Trade and Industry (MTI) announced on 17 Feb 2020 that they have downgraded the country’s GDP growth forecast to be -0.5 to 1.5 per cent. Singapore 2020 GDP growth is expected to be around 0.5 per cent, the mid-point of the latest forecast range.
MTI also projected a GDP growth forecast of 0.5 to 2.5 per cent back in Nov 2019. However, the latest forecast indicates a recession due to the novel coronavirus outbreak.
“The outlook for the Singapore economy has weakened since the last review in November. The COVID-19 outbreak is expected to affect the Singapore economy through several channels,” said MTI in a statement.
For the whole of 2019, Singapore economy grew by 0.7 per cent, slower than the 3.4 per cent growth in 2018. However, the construction sector remains strong and unaffected. It is projected to grow steadily due to the rebound in construction demand since 2018.
Construction sector’s GDP performance
The construction sector grew by 2.8 per cent in 2019, a positive turnaround from the -3.5 per cent contraction in 2018. The growth was supported by both public and private sector construction works.
On a year-on-year basis, the construction sector grew by 4.3 per cent in the fourth quarter of 2019, an improvement from the 3.1 per cent growth in the third quarter.
On a quarter-on-quarter seasonally-adjusted annualised basis, the sector expanded by 5.3 per cent, a better growth than the 3.5 percent increase in the previous quarter.
– Construction+ Online
Source: Ministry of Trade and Industry