SINGAPORE, May 27 (NNN-CNA) – Singapore’s Ministry of Trade and Industry (MTI), announced that, Singapore’s GDP growth forecast for 2020 was further downgraded to “-7.0 to -4.0 percent.”
It is the third time for the government to downgrade the forecast range since this Feb.
On Feb 17, MTI downgraded the GDP growth forecast for 2020 to “-0.5 to 1.5 percent” from the previous “0.5 to 2.5 percent,” on account of the COVID-19 outbreak. On Mar 26, it revised the forecast downwards to “-4.0 to -1.0 percent,” as the escalation of the COVID-19 outbreak worldwide led to a significant deterioration in the economy.
This time, the ministry said, the disruptions to economic activity in major economies around the world had been more severe than expected since the last revision, and there remained significant uncertainties in the global economy.
It said, the outlook for Singapore economy weakened further, since Mar. First, outward-oriented sectors, such as manufacturing, wholesale trade, and transportation and storage, will be adversely affected by the sharper-than-expected slowdown in many of Singapore’s key markets, as well as, more prolonged supply chain disruptions.
Second, the circuit breaker measures implemented by the government to curb the spread of COVID-19, which include the closure of most workplace premises, have further dampened domestic economic activity, along with domestic consumption.
Third, sectors, like the construction sector and the marine and offshore engineering sector, have been severely affected by manpower shortages due to the outbreak of infections among foreign workers, especially those living in foreign worker dormitories.
“Notwithstanding the downgrade, 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, in both the global and Singapore economies,” the ministry added.– NNN-CNA