Singapore faces worst recession

SINGAPORE — Singapore downgraded its 2020 gross domestic product forecast for the third time on Tuesday, the trade ministry said, as the bellwether economy braces for its deepest-ever recession.

The city-state lowered its GDP forecast to a contraction range of -7 per cent to -4 per cent from the prior range of -1 per cent to -4 per cent.

Singapore’s economy shrank 0.7 per cent year-on-year in the first quarter and 4.7 per cent on a quarter-on-quarter, a less severe decline than advance estimates, although officials and analysts warned of more pain ahead.

“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.

Singapore also downgraded its 2020 forecast for non-oil domestic exports to -4 per cent to -1 per cent, from -0.5 per cent to 1.5 per cent previously.

Also on Tuesday, Singapore unveiled its fourth multi-billion dollar economic stimulus package in as many months.

The latest package, focused on retaining jobs, is worth S$33 billion ($23.22 billion) and was unveiled by finance minister Heng Swee Keat. —