Singapore to enter recession this year, says MAS

This photograph taken on February 18, 2020 shows people walking near commercial buildings in the central business district in Singapore. - Singapore's economy, a bellwether for trade-reliant Asian countries, suffered its worst contraction since the global financial crisis in the first quarter as the coronavirus pandemic escalated, official data showed on March 26. (Photo by ROSLAN RAHMAN / AFP)

The Monetary Authority of Singapore (MAS) has announced in its latest half-year macroeconomic review that the island nation’s economic growth could foresee further dip below the forecast range of -4 to -1 percent.

As the pandemic continues to affect Singapore, the country is expected to enter into recession this year as a result of it, which will see job losses and lower wages.

According to Channel News Asia (CNA), Singapore’s worst recession was during the Asian financial crisis in 1998.

The central bank further pointed out that there remains significant uncertainty over the severity of the downturn and the country’s economy will likely to see sharp contractions in the second quarter due to the severity of the outbreak among major trading partners.

MAS has also expressed uncertainty as to whether the disease will subside in the second half of the year and until a vaccine is discovered, risks of a subsequent waves of infection is high.

Deployment of stricter containment measures around the globe could impose further economic strain, the central bank says. The travel-related industries are expected to see layoffs as well, as workers in the food and beverage services are categorised as the most vulnerable to lay-offs.

If not lay-offs, salary reductions will take place among several firms.


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