Talk about V-shaped recoveries. Here’s one that’s actually for real. It’s in Singapore and it’s huge.
Singapore appears to be emerging from its worst recession on record after the economy expanded at an annualised rate of 20.4% between April and June.
The rapid expansion compares with a revised contraction of 12.7% in the first quarter from January to March.
It was the first quarterly expansion in a year, lifted by increased drug sales and construction activity, said the Ministry of Trade and Industry.
However, the government still expects the economy to contract for the year.
Now, to be fair, the economy in Singapore is still down 3.7% year-on-year – and this is after a 20.4% surge in Q2. So we are talking about an economy that had been absolutely crushed by the global downturn – and it is a lot easier to grow from a lower base. But, as I said in May, Asia is de-coupling and this is evidence supporting that de-coupling. I don’t expect a similarly marked upturn in the U.S. or Europe.
Singapore’s economy bounces back – BBC News