The second quarter flash numbers are “quite disastrous… way below even the worst street forecasts,”said Selena Ling, head of treasury and strategy at OCBC Bank, adding that the main drag remains manufacturing.
In the second quarter, manufacturing contracted 3.8% from a year earlier after shrinking 0.4% in the quarter earlier.
Singapore authorities have previously said they will review their 2019 full-year GDP growth of 1.5%-2.5%, and some analysts say there might be a recession in 2020.
Ling said she expects authorities to soon lower full-year growth forecasts to 0.5-1.5%.
Electronics manufacturing output, the main driver of Singapore’s economy in the last two years, declined for the sixth consecutive month in May while exports saw its biggest decline in more than three years.