Singapore GDP shrinks most since amid Pandemic

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Singapore’s economy, suffered its worst shrinkage, since the worldwide financial crisis in the first quarter as the coronavirus pandemic escalated, official data showed on Thursday.

The trading hub’s GDP shrank 2.2 percent year after year in the first quarter, consistent with the advance conclusion by the trade ministry. In comparison to the previous quarter, GDP fell by 10.6 percent.

Lockdowns and other measures to contain the spread of the virus imposed by governments worldwide is striking and damaging the global economy, which many analysts now expect to fall into a deep, long recession.

The city-state, a travel hub and financial Centre, is typically among the first countries to be hit during global crises because of its small and open economy, with ripples then spreading across the region.

The first quarter data was the worst quarterly contraction since 2009 during the global financial crisis, which was the last time the economy fell into recession. The ministry also further dropped its GDP forecast for this year and said further it expects the economy to shrink between 1.0 and 4.0 percent.

“As the global COVID-19 situation is still evolving rapidly, there remains a significant degree of uncertainty over the severity and duration of the global outbreak, and the trajectory of the global economic recovery once the outbreak has been contained,” the ministry said in a statement. He added, “The balance of risks, however, is tilted to the downside.”

Singapore normally gives advance estimates even before the quarter ends to gauge performance, making it one of the first economies in the region to give an indication of the impact. Despite the fact that they do not cover the full period, meaning the revised figure will be released later which can be even worse.

Like various other places, Singapore has also taken major performance to hold the pandemic, including banning all foreign arrivals. The city-state has reported 631 virus cases, including two deaths. Also, before the virus, Singapore’s economy was already being forged by the US-China trade war.