Singapore lowers GDP outlook again

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.