Singapore’s economy suffers worst decline in 2020 due to COVID-19

Singapore’s economy went through its worst ever annual contraction in 2020 due to the coronavirus pandemic, official data showed on Monday, reported AFP.

However, it was a 5.8% decline, 0.7% less than what official forecasts predicted, as economic activity picked up with the easing of curbs.

Singapore plunged into its first recession in the second quarter when the government closed most workplaces as part of drastic measures to contain infections.

One of the world’s most open economies, Singapore is seen as a bellwether for the health of global trade, and its economy’s dramatic deterioration rang alarm bells.

Although as curbs were eased in the second half of the year, key sectors such as manufacturing have begun to recover for the betterment of the economy.

In the fourth quarter, the economy shrank 3.8% year-on-year, less than expected, according to preliminary growth data released by the trade ministry.

Singapore’s small economy is typically hit first by external shocks before ripples spread across the region. However, it usually also recovers quickly from any downturn.

The city-state won praise for keeping the deadly virus under control in the early stages only for serious outbreaks to emerge later in crowded dormitories housing low-paid migrant workers.

But its outbreak has slowed markedly in recent weeks, and only a handful of cases are being recorded a day.

Last week, authorities began a coronavirus vaccination campaign, making it among the first Asian nations to roll out the doses.