(Bloomberg) — Singapore’s economic situation remains dire amid the coronavirus pandemic, impacted by what could be lasting shifts in global demand and to supply chains, according to the city-state’s central bank.
“Even if subsequent waves of infection are more limited” globally, it’s not clear whether confidence in resuming normal economic activity will be restored, Ravi Menon, managing director of the Monetary Authority of Singapore, said at a briefing Thursday following the release of the central bank’s annual report. “People may be slower to return to previous patterns of work as long as the virus is still circulating.”
After weathering U.S.-China trade-war pressures in 2019, Singapore’s export-reliant economy has been slammed by coronavirus travel restrictions, disruptions to supply chains and government-imposed lockdowns that have pummeled consumption.
Gross domestic product plunged an annualized 41.2% in the second quarter from the first three months of the year, the biggest quarterly contraction on record. The government expects the economy to shrink 4% to 7% this year, though Menon on Thursday noted both upside and downside risks to that forecast.
Stimulus Steps
Menon said roughly 12% of Singapore’s economy is at the “epicenter” of the impact from the pandemic. Travel-related sectors — including airlines, accommodation, arts and entertainment, and recreation — account for about 4% of Singapore’s GDP and have exerted the “largest drag on economic growth,” he added.
“The financial services sector in particular has done reasonably well” amid the pandemic, Menon said, with a “good part” of financial activity moving online. Technology enabled 85% of finance workers to work from home during Singapore’s partial lockdown, with minimal disruption.
Singapore Banks Show Resilience to Covid Crisis, MAS Chief Says
Singapore has rolled out about S$93 billion ($67 billion) in fiscal support to alleviate the economic impact of the virus and containment measures, including wage subsidies, rental relief, government fee waivers and jobs training opportunities.
The MAS, which uses the currency as its main policy tool rather than interest rates, took unprecedented easing steps in March to help cushion the economy. It lowered the midpoint of the currency band and reduced the slope to zero to allow for a weaker exchange rate that could support export-driven growth.
Other highlights from the briefing:
Weak external demand and “continued small frictions” in global supply chains will continue to weigh on Singapore’s trade, but exports of biological and electronic products have held up better than expected
The central bank aims to curb disinflationary pressures that could destabilize the economy
MAS doesn’t seek to enhance export competitiveness by weakening the exchange rate
About $21 billion has been provided through a U.S. dollar facility MAS set up following an arrangement with the U.S. Federal Reserve
MAS sees no need to adjust measures introduced over the past decade to cool the property market, which have helped temper the downturn’s impact on property prices
Higher corporate and household debt levels entering 2021 will weigh on growth and could be a “source of vulnerability” for the economy
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
