Singapore cuts its GDP forecast for the third time this year, as their GDP seems to have been battered by the pandemic.
The country’s economy has taken a major hit due to the pandemic, as the first quarter saw a 0.7% year-on-year decrease, warning of a more severe hit in the days to come. Economists say that the country is headed for its deepest ever recession.
The first signs of a potential recession was noticed when the government cut its 2020 GDP projections to -0.5% to 1.5%, from 0.5% to 2.5% previously.
“There continues to be a significant degree of uncertainty over the length and severity of the COVID-19 outbreak, as well as the trajectory of the economic recovery,” said Gabriel Lim, permanent secretary at the ministry of trade and industry.
There has also been a downgrade in the non-oil domestic exports, from -0.5% to 1.5% previously to -4.0% to -1.0%.
Exports have proved to be a silver lining in an otherwise bleak economy, due to the increasing demand in pharmaceuticals, thanks to the pandemic.
Singapore’s finance minister is touted to address this issue on Tuesday by delivering the latest in a string of multi-billion-dollar economic packages to offset the hit to businesses and households from the pandemic later.