Business

OCBC predicts recession for Singapore in 2020, downgrades growth forecast

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SINGAPORE – The global economic slowdown, accelerating social distancing measures and increasing travel lockdowns could send Singapore sinking into a recession this year, said OCBC, the latest bank to downgrade its growth forecast.

It expects the economy to shrink 0.5 per cent this year compared with its previous forecast of 0.3 per cent growth, the bank said on Tuesday (March 24).

Ms Selena Ling, its head of treasury research and strategy, noted that first-quarter growth could contract by 1.1 per cent over the same period last year and plunge 8.7 per cent compared with the previous quarter.

This would be the worst year-on-year showing since June 2009 and the worst quarter-on-quarter sequential growth since September 2015, she said.

These grim forecasts are due to disruptions from the coronavirus "impacting the manufacturing and trade sector", Ms Ling said.

The fallout from the outbreak on the Singapore economy "will be fairly devastating" in terms of both manufacturing and services, she added.

The growing demand shock has affected services industries such as transport, commerce and accommodation.

OCBC is also revising down its forecasts for headline and core consumer price index to betweeRead More – Source