The Wall Street Journal, 2 Jan 2009, P.R. VENKAT
SINGAPORE -- Singapore plunged deeper into recession in the fourth quarter as gross domestic product marked its biggest quarterly decline on record, said the government, which lowered its projection for 2009.
The darker outlook for the small, trade-dependent economy -- considered to be a bellwether for the rest of the region -- likely means the government will step up spending to offset a slowdown in manufacturing and a rapid cooling in the construction and services sectors. It may also pressure the central bank to ease monetary policy to support growth.
Singapore's economy contracted at a seasonally adjusted, annualized pace of 12.5% in the quarter, accelerating from a 5.4% decline in the third quarter, according to the Ministry of Trade and Industry's estimate. It was the biggest contraction since the government began publishing seasonally adjusted data in 1976.
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