Despite its best attempts at curbing the spread of the deadly coronavirus, Singapore finds itself at the brink of recession. The country will enter into recession this year due to coronavirus and the long-lasting impact of the lockdown it has implemented. The city-state’s economy is suspected to drop below the forecast range of -4 to -1 percent to record its worst-ever contraction, as notified by the country’s central bank on Tuesday.
The Monetary Authority of Singapore (MAS) in its half-yearly macroeconomic review warned of job losses and lower wages offered to employees and have informed of “significant uncertainty” over how long and how profoundly the effects of this downturn will be.
In its 132-page report, the MAS said, “The Singapore economy will enter into a recession this year.”
The current situation for Singapore is likely to worsen economically in the second quarter given the intensity of the outbreak among its major trading partners around the world, as well as due to the domestic “circuit breaker” measures implemented earlier this month.
The MAS has eased out its monetary policy in the last month as the economy has faced its worst-ever recession in its 55-year old history. The pandemic has hit the Singaporean economy hard enough to shrink it to 2.2 percent – which is its steepest fall since the 2009 financial crisis, as reported by The Star Online.
At the moment, all non-essential services are defunct and residents are to adhere to the confines of their homes except to buy food and groceries or just to exercise alone.