- May 26, 2023
- Posted by: admin
- Category: Daily News
- Whether Singapore’s economy enters a technical recession will depend on near-term external factors such as how the global electronics industry will fare, as well as the state of the Chinese and United States economies, said Deputy Prime Minister Lawrence Wong.
- The factors of de-risking or decoupling in the world economy are broader, longer-term concerns, he added, in an interview on Friday with the Singapore media at the end of his official trip in Japan.
- Singapore’s economy shrank 0.4% in 1Q23, over 4Q22, official data showed on 25 May. This means the Republic is at risk of a technical recession, which is defined as two consecutive quarters of contractions.
- Among the external challenges that Mr Wong cited were a downturn in the global electronics industry, the state of the Chinese economy, and whether the US economy achieves a soft landing.
- The global electronics downturn – with a slump in worldwide demand in advanced economies such as the US and the European Union – has hit Singapore’s manufacturing activity. Electronics accounts for 42% of Singapore’s manufacturing output.