Singapore lowers GDP outlook again

Singapore is facing the deepest recession in its 55-year history: the island nation has downgraded its economic forecast for the third time in a row.

Empty landmark: Only a few pedestrians are walking along Marina Bay with the Marina Bay Sands Resort in the background.

SOn Tuesday, ingapur downgraded its forecast for the gross domestic product for 2020 for the third time in a row. According to the Ministry of Commerce, the city-state expects a decline of -7 to -4 percent from -1 percent to -4 percent previously. Economic activity fell 0.7 percent year-over-year in the first quarter and 4.7 percent year-on-year, according to data from the ministry. “Regardless of the downgrade, there is still a significant amount of uncertainty about the duration and severity of the Covid-19 outbreak and the course of the economic recovery,” said a statement from the Ministry of Commerce. Singapore is facing the deepest recession in its 55-year history: authorities warned of rising unemployment and falling wages as a result of the crisis. Analysts expect the trade-dependent economy could see an even bigger slump in the second quarter as most stores were closed due to the two-month restrictions to contain the coronavirus pandemic.

The city-state has one of the highest numbers of infections in Asia and as a result has only announced a slow easing of restrictions from next month. The government first indicated the possibility of a recession in February when it lowered its GDP forecast for 2020 from 0.5 percent to 2.5 percent. Singapore’s finance minister is expected to come up with a new multi-billion dollar economic package late Tuesday to help cushion the burden on businesses and households from the pandemic.