News analysis

Time to prepare for a wider downturn

It may be prudent for Govt to start on a stimulus package blueprint while in 'wait and watch' mode

"Flirting with recession" is how some economists describe the state of the Singapore economy after the latest flash estimates of second quarter growth, and it is apt. The estimates, which are based on two months' data, might be revised upwards but will still paint a gloomy picture.

As they stand now, the numbers, which were released yesterday, came as a surprise, if not a shock, to most economists. The economy was estimated to have tanked by 3.4 per cent quarter on quarter, bringing year-on-year-growth to a paltry 0.1 per cent.

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A version of this article appeared in the print edition of The Straits Times on July 13, 2019, with the headline 'Time to prepare for a wider downturn'. Print Edition | Subscribe