Singapore's economy slipped into a technical recession after contracting over 40 percent in the second quarter compared with the previous quarter after being dragged down by weak external demand and coronavirus-led shutdown that almost halted trade completely. The news comes just two days after the ruling People's Action Party retained its power in the country's general election.

A technical recession means two consecutive quarters of quarter-over-quarter contraction of the GDP. The coronavirus-related lockdown almost brought the entire core sector of the city state to a standstill in the second quarter and may further continue to take its toll if the crisis continues to persist.