Last Year's Singapore Growth Rate Hits Lowest in 10 Years... "Impact of US-China Trade War"

[Asia Economy Reporter Jeong Hyunjin] Singapore's real Gross Domestic Product (GDP) last year recorded its lowest level in 10 years, the Singapore Ministry of Trade and Industry announced on the 2nd. Although the United States and China reached a Phase One agreement, lingering conflicts appear to have impacted Singapore's economy, which is highly dependent on exports.

According to Bloomberg News and others, Singapore's real GDP growth rate last year was 0.7% compared to the previous year. This is the lowest level since 2009 (0.1%) and a significant drop from 2018 (3.1%). Bloomberg evaluated that "Singapore, one of the world's most export-dependent countries, has its economic growth prospects tied to the direction of global trade," noting the impact of the US-China trade war.

Singapore's real GDP in the fourth quarter increased by 0.8% year-on-year. During the fourth quarter, the manufacturing sector's growth rate decreased by 7.3% quarter-on-quarter, while the construction and services sectors increased by 2.1% and 2.4%, respectively. The Singapore Ministry of Trade and Industry projected this year's GDP growth rate to be between 0.5% and 2.5%. DBS Bank, Singapore's largest bank, predicted a 1.4% increase.

Earlier, Singapore Prime Minister Lee Hsien Loong stated in a national address at the end of last month, "The global economic slowdown has already affected us. This year, we avoided a recession," adding, "Our economy is still growing, but less than we had expected." He also mentioned that the 2020 budget, to be announced in mid-next month, may include measures focused on supporting corporate productivity improvement and enhancing citizens' capabilities.

This content was produced with the assistance of AI translation services.