Singapore not expected to face technical recession despite downward revision of Q2 growth

SINGAPORE’S updated second-quarter growth figures surprised on the downside as the economy shrank 0.2 per cent quarter on quarter, but neither authorities nor private-sector economists expect this to herald a technical recession.

Ministry of Trade and Industry (MTI) chief economist Yong Yik Wei told reporters at a Thursday (Aug 11) morning briefing that growth is expected to return to a “slight positive” in the third and fourth quarters – therefore avoiding a technical recession, defined as 2 consecutive quarters of quarter-on-quarter contraction.

Still, given the weakened global economic environment, it should not be surprising to “see some negatives” for quarter-on-quarter growth from time to time, she added.