Singapore Downgrades GDP Forecasts for 2020 - Forex News by FX Leaders
Singapore Downgrades GDP Forecasts for 2020

Singapore Downgrades GDP Forecasts for 2020

Posted Tuesday, May 26, 2020 by
Arslan Butt • 1 min read

As the coronavirus crisis continues, Singapore’s trade ministry has once again downgraded GDP forecasts for this year, in anticipation of what could be the worst ever economic recession the city state has ever experienced. The ministry now expects the GDP to come in between -4% and -7%, lower than the previous estimated range of -4% to -1%.

While sharing the revised forecasts, the trade ministry noted, “Notwithstanding the downgrade, there continues to be a significant degree of uncertainty over the length and severity of the COVID-19 outbreak, as well as the trajectory of the economic recovery.”

Singapore also expects a reduction in its non-oil exports this year, as a result of weak external demand due to the pandemic. The trade ministry now expects non-oil exports from Singapore to be anywhere between -4% and -1%, down from the previous forecast between -0.5% and 1.5%.

The lockdown is expected to drive a severe contraction in the economy during the current quarter, while unemployment levels are expected to rise sharply and wages could see a steep decline. Unlike several other parts of the world, Singapore continues to remain in lockdown and the government expects some level of easing to begin gradually only by next month.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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