The Singapore economy is predicted to contract by 5.8 percent in 2020, according to a survey by the Monetary Authority of Singapore (MAS) released on June 15.
Office workers at Raffles Place after the circuit breaker period.
This is a sharp reversal from the 0.6 percent growth expected by economists in the previous survey.
The worst affected areas by the COVID-19 pandemic are wholesale and retail trade, office leasing, catering services and personal consumption. Accordingly, office leasing and catering services are expected to drop by 26 percent this year, much greater than the 1.6 percent contraction previously predicted.
The wholesale and retail trade sector is expected to contract by 12.8 percent, as compared to the 0.7 percent contraction forecast previously.
However economists are slightly more optimistic in other areas. The manufacturing sector is now expected to grow by 2.2 percent for 2020, as compared to the 0.3 percent contraction predicted in the previous survey.
The finance and insurance sector is expected to post a growth of 3.1 percent, up from the 2.6-percent growth predicted previously.
Singapore is facing the worst recession in history, with its economic growth expected to decline by 4-7 percent in 2020. The Southeast Asian country’s GDP growth is expected to rise to 4.8 percent in 2021 as a whole./.