ANI
26 May 2023, 15:25 GMT+10
Singapore, May 26 (ANI): After Germany entered recession, Singapore fears slipping into a 'technical recession' in the second quarter as the country's exports outlook weakened following a slowdown in global demand, Channel NewsAsia (CNA) reported citing economists.
Singapore's economy is heavily dependent on exports, which has been weakening after several agencies earlier forecasted a slowdown in global economies in 2023.
"There remains a high risk that the economy slips into a technical recession, either in (the second quarter) or in the second half of the year," CNA, Singapore's state broadcaster reported Shivaan Tandon from Capital Economics, as saying.
A technical recession is often defined as two consecutive quarters of negative growth in the real GDP.
"While advanced economies have held up better than initially expected, we expect that resilience to fade in the second half of the year which will weigh heavily on demand for Singapore's exports," he added.
He further stated that these dynamic raises the risk of a technical recession given the export-driven nature of Singapore's economy.
These comments came after the official data for the first quarter showed the economy declined 0.4 per cent, reported CNA.
This marks a reversal from the 0.1 per cent growth in the fourth quarter of 2022, leaving the economy at risk of a technical recession which is defined as two consecutive quarter-on-quarter contractions.
Singapore's small and open economy relies heavily on trade, but external demand has been weakening amid a slowdown in the global economy, still-strong inflationary pressures and a downturn in the global semiconductor industry.
The country's key non-oil domestic exports (NODX) have since chalked up a seven-month losing streak. Authorities on Thursday also downgraded the 2023 forecasts for NODX following a "worse-than-expected" performance in the first quarter.
Meanwhile, Maybank economists Chua Hak Bin and Lee Ju Ye, with the weaker performance in the external-oriented sector, see Singapore's economy stagnating, instead of staging a rebound, in the coming quarters, according to CNA.
They added that Singapore may slip into a technical recession "if the boost from China's reopening fails to materialise in the second quarter".
Earlier, the German economy was in recession in early 2023 after household spending in Europe's economic engine finally succumbed to the pressure of high inflation, according to Reuters.
Gross domestic product fell by 0.3 per cent in the first quarter of the year when adjusted for price and calendar effects, a second estimate from the statistics office showed on Thursday. This follows a decline of 0.5 per cent in the fourth quarter of 2022. A recession is commonly defined as two successive quarters of contraction, as per the report in Reuters.
Germany's Finance Minister Christian Lindner, on Thursday, said that the GDP data showed "surprisingly negative signals."He added that comparing Germany with other highly developed economies, the economy was losing the potential for growth.
"I don't want Germany to play in a league in which we have to relegate ourselves to the last positions," Lindner said, referring to the forecasts of the International Monetary Fund, which predicted a recession in 2023 only in Germany and Britain among European countries, according to Reuters. (ANI)Get a daily dose of Afghanistan Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Afghanistan Sun.
More InformationNEW YORK CITY, New York: A Delta Air Lines plane's wing hit the runway at LaGuardia Airport during a rough landing over the weekend....
AUSTIN/SANTA FE: Measles cases in Texas and New Mexico increased to 317 on March 18, up from 294 four days earlier, as the U.S. faces...
WASHINGTON, D.C.: The Trump administration is considering strict new travel restrictions for citizens of dozens of countries, according...
WASHINGTON, D.C.: The Trump administration announced this week that Maine's education officials violated federal law by allowing transgender...
NEW YORK CITY, New York: Severe storms and tornadoes continued to threaten parts of Pennsylvania, New York, and several Mid-Atlantic...
As Israeli tanks rolled into Gaza on Wednesday heralding a new ground invasion, a UN building was destroyed in a bombing, killing one...
WASHINGTON, D.C.: The Trump administration is considering strict new travel restrictions for citizens of dozens of countries, according...
A child has hair cut at a barbershop in Tengzhou City, east China's Shandong Province, March 1, 2025.(Photo by Li Zhijun/Xinhua)BEIJING,...
(250321) -- KABUL, March 21, 2025 (Xinhua) -- People view the artworks during a painting exhibition in Kabul, capital of Afghanistan,...
This photo taken on March 18, 2025 shows the scenery of pine nut forest in east Afghanistan's Paktia province. (Saifurahman Safi/Xinhua)SHAWAK,...
Washington DC [US], March 21 (ANI): US Secretary of State Marco Rubio said on Friday that George Glezmann, who was wrongfully detained...
Kabul [Afghanistan], March 21 (ANI): A 4.9-magnitude earthquake struck Afghanistan on Friday, according to the National Center for...