Singapore rebound, Philippines cases surge

Both Singapore and the Philippines saw a massive slump in output last quarter – the revised estimate of Singapore Q2 GDP next week is likely to show a 10.5% y/y fall, while data from the Philippines this week showed its economy shrank by a whopping 16.5% y/y. But there is a stark difference in the outlook for the two economies. With the economy continuing to reopen and a massive fiscal stimulus also supporting growth,Singapore is set to rebound strongly.  In contrast, the recovery in the Philippines threatens to stall, or even go in to reverse, following the decision to re-introduce a lockdown in Manila to try and control surging infections.