Singapore Registers Record Economic Contraction

Singapore's gross domestic product plunged 41.2% in Q2 compared to the previous quarter.

This is the biggest quarterly contraction on record.

A July 14 Associated Press article provides more details. Here's an excerpt:

Singapore's economy entered recession in the April-June quarter, contracting 12.6% from the same period a year earlier.

Preliminary data reported Tuesday showed the economy contracting 41.2% in quarterly terms in April-June as the city-state, heavily reliant on trade and tourism, imposed "circuit breaker" precautions to curb the coronavirus pandemic.

An update of the data are due for release in August.

An early outbreak of the COVID-19 virus was followed later by a surge in cases among Singapore's sizable migrant worker population. That prompted authorities to suspend nonessential services and close many offices to stem the spread of infections.

The economy contracted 0.3% from a year earlier in the first quarter of the year and 3.3% in quarterly terms. That means with two straight quarters of contraction it is in a technical recession.

The economic slowdown that many nations across the globe are experiencing is no surprise to Elliott Wave International's analysts.

Even before Covid-19 was constantly in the headlines, the November 2019 Global Market Perspective, a monthly publication which provides analysis of 40-plus markets, showed this chart and said:


The economy is stronger in the U.S. relative to Europe, but signs of an oncoming economic contraction continue to mount. In July, EWFF showed a chart of a new all-time high in U.S. Nonfarm Payrolls and maintained that it would soon succumb to a reversal in social mood. The chart above shows another measure of employment, U.S. Job Openings, which is part of the U.S. Job Openings and Labor Turnover Survey. The JOLTS assess the unmet demand for labor in U.S. markets. The measure topped a year ago, in November 2018, at 7.6 million and recently made a new 19-month low.