![\"Singapore](\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-content\/uploads\/2023\/08\/photo-singapore-avoids-technical-recession-with-sufficient-economic-growth-400x300-1.jpg\" "\\"Singapore")
After growing slightly in the second quarter of this year, Singapore avoids technical recession by a narrow margin.<\/p>\nAfter growing slightly in the second quarter of this year, Singapore avoids technical recession by a narrow margin.<\/p>\n
The slowdown in the second quarter was because China\u2019s global demand weakened, impacting trade flows. Seasonally, Southeast Asia\u2019s economy grew 0.3% (quarter-on-quarter). This was followed by a 0.4 contraction within the first three months of this year.<\/p>\n
Until October, no change to the monetary policy is expected out of the central bank. Even though Singapore avoids technical recession this time, it is still possible that the second quarter\u2019s final GDP figures could be revised. Recently, there have been signs of softening growth happening in China.<\/p>\n
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China fuelled hopes for a sustainable recovery in the tourism and commerce sector by reopening its economy. This was good news for Singapore because the country is so export-dependent. However, inflation and higher interest rates have strained that recovery.<\/p>\n
The recovery is primarily thanks to the activity of the service, although barely. Economists had to cut their forecast to 1.0% from its original 1.5%. With the weakening economy and inflation slowing down, October will likely see the central bank loosening its monetary policy.<\/p>\n
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A technical recession was not something the Government was expecting to see in May. For eight months straight, industrial export and output have fallen, signalling the possibility of a prolonged downturn.<\/p>\n