Better year ahead for Singapore economy

Consensus take: Taking the mean probability distribution in the latest MAS survey, the most likely outcome for the Singapore economy is a contraction of 5.1% to 7% this year. — AFP

SINGAPORE: Private-sector economists have lowered their 2020 forecast for Singapore’s economy but they turned more bullish over the strength of a recovery next year and suggest the worst of the coronavirus-induced contraction came in the second quarter.

The economy may shrink by 6% this year, according to a quarterly survey of 26 economists and analysts by the Monetary Authority of Singapore (MAS), slightly worse than the 5.8% contraction predicted in the previous June survey. However, the professional forecasters expect growth in gross domestic product (GDP) to recover to 5.5% in 2021, up from the 4.8% they had tipped earlier, MAS said in its survey report released yesterday.