Singapore’s recession may be much deeper than expected this year as the coronavirus pandemic continues to beat the wealthy city state.
Officials on Tuesday cut the country’s economic forecast for the third time this year. GDP growth is now set to drop between 4% and 7%, down from an expected drop of 1% to 4%, according to the Ministry of Commerce and Industry.
The dark perspective marks an important departure from a few months ago. Earlier this year, Singapore was seen as one of the few countries who had his response to the coronavirus under control.
But he recently experienced an alarming second wave of infections, which led to more restrictions. The island nation now has 31,960 confirmed cases, compared to a few hundred in March, according to data from Johns Hopkins University.
Singapore was already headed for recession last year as its exports plummeted due to the US-China trade war.
Now “we think the economy is already in recession”, by Sung Eun Jung Oxford Economics wrote in a research note Tuesday.
To support the economy in crisis, the government has distributed billions of dollars in stimulus measures.
A new package is also expected on Tuesday, when Deputy Prime Minister and Finance Minister Heng Swee Keat presents a business aid plan in a speech to parliament.