Sunday November 23, 2008

Singapore GDP contracted 6.8% annualized in Q3 2008, heads deeper into recession

This article belongs to the Singapore recession watch story arc.

bloomberg.com :

The Singapore economy, already in recession, may shrink by as much as 1% in 2009, the first time since 2001. Year-on-year, Singapore's economy declined 0.6% in Q3 2008. Singapore's GDP contracted an annualized 6.8% in Q3 2008 quarter-on-quarter, after shrinking a revised 5.3% in Q2. Singapore's economy has been battered by declining orders for electronic goods and pharmaceuticals from its biggest customers in recession-hit US and Europe.

The manufacturing industry, which accounts for a quarter of the economy, contracted 11.4% from a year earlier, leading to widening losses at companies including Chartered Semiconductor. Three-quarters of the 2,000 workers retrenched in Singapore in Q3 were from manufacturing. More workers are expected to be laid off in manufacturing and finance, the government said. Singapore's services industry slowed as the global credit crunch hurt financial companies, tourist arrivals dropped and consumers cut back on spending. The Singapore dollar is among Asia's worst performing currencies after MAS shifted to a "zero-percent appreciation" stance, sliding 6.2% against the USD since Oct 2008.

- Here we have it, the first official confirmation of Singapore's GDP growth turning into a GDP contraction, as the year-on-year rate falls into negative territory. Another quarter of this and we would be in full-blown recession as measured by year-on-year GDP figures. Before this, the talk was all about how this was a technical recession, since the figures were quarter-on-quarter and the annual rates were based on extrapolation.

There is no more half-hopeful talk of a "technical recession" now. The Singapore government is now saying that this is going to last for a few years. The contrarian community agrees and has already looked ahead and we see that we have headed not only into a recession, but a depression. Welcome to the Second Great Depression. And yes, it will last many years. More than you might expect.

See also :

1. Singapore stagflation : May 2008 exports fell most in 17 months; inflation at 26-year highs
2. Singapore GDP shrinks 6.6% in Q2 2008 as stagflation continues
3. Singapore economy falling into technical recession as exports fall
4. Singapore economy in recession, GDP contracts 6.3% in Q3 2008, MAS ends currency gain policy

(2008-11-23 10:57:19 SGT) [Biz] Permalink

Most popular blog postings on lowem.log :

1. 2010 Nissan Leaf electric car specifications : 107hp, 24KWh lithium-ion batteries, 100-mile range
2. 2010 Honda CR-Z hybrid, 2010 Honda Fit/Jazz hybrid models confirmed
3. 2010 Honda Civic Hybrid preliminary specifications released
4. Singapore SIBOR rate falls to 0.69% in Jan 2009, lowest since Apr 2004
5. How to insert currency exchange rates into Google Spreadsheets
6. Singapore : Nuclear power not ruled out
7. Live spot gold price quotes chart on COMEX
8. 2010 Toyota Prius specifications released : 50 mpg, 1.8L, 134hp, Ni-MH, solar roof option

Featured articles on lowem.log :

1. 2010 Honda Civic Hybrid preliminary specifications released
2. 2010 Honda CR-Z hybrid, 2010 Honda Fit/Jazz hybrid models confirmed
3. 2010 Toyota Prius specifications released : 50 mpg, 1.8L, 134hp, Ni-MH, solar roof option
4. Honda, GS Yuasa JV to make lithium-ion batteries for 2010/2011 Honda Civic Hybrid
5. New efficient nanotech materials may boost enhanced geothermal power systems
6. NYMEX crude oil recovers from $32.40 low after 2.2 mbpd OPEC production cut announced
7. Singapore property market recovery seen as private home sales surge 52% in Jul 2009
8. Singapore SIBOR rate falls to 0.69% in Jan 2009, lowest since Apr 2004