Singapore’s economy contracted 2.2% in the first quarter, the worst decline in a decade, and forecasts are for it to drop between 1 and 4% in 2020 due to COVID-19, authorities on Thursday said. the city-state.
In a statement, the Ministry of Commerce and Industry pointed out that restrictions due to the new coronavirus are the main factor in the fall in GDP, mainly in the construction sector (-4.3%) and the services sector (- 3, one %).
Among the effects of the restrictions caused by the pandemic, the ministry cited the interruption of supply chains, the lack of immigrant workers in construction due to the cancellation of flights and the fall in tourism, among others.
Last February, the authorities estimated that the economy would contract between 0.5 and 1%, but with the spread of the new coronavirus around the world, the forecasts are much worse now.
“The broader forecast (from -1 to -44%) reflects the greater uncertainty in the global economy, given the unprecedented nature of the COVID-19 outbreak, including sanitary measures in many countries to contain the outbreak,” said the Ministry.
Singapore, with 685 patients and two deaths from the new coronavirus, is one of the countries that has best responded to the pandemic, mainly thanks to an efficient virus detection and limitation system.
However, its economy, one of the most open in the world, is very vulnerable to the fall in global trade.