Singapore’s economy shrank 7% yoy in the third quarter 2020, compared with market consensus of a 6.8% fall and after a marginally revised 13.2% decline in the prior period, an advance estimate showed. This was the third straight contraction, amid the phased re-opening of the economy following the Circuit Breaker that was applied between 7 April and 1 June 2020. Construction activity dropped at a softer rate (-44.7% vs -59.9%) as the sector needed to implement safety management measures for a safe restart. Also, the services sector shrank less (-8% vs -13.6%), with transport and accommodation, wholesale trade, and retail and food services remaining weak while the finance & insurance and information & communications recording steady growth. Meantime, the manufacturing sector grew by 2%, a reversal from a 0.8% drop in the prior quarter. On a quarterly basis, the economy expanded 7.9%, rebounding from the 13.2% fall in the preceding quarter.
