Singapore is in a recession, and it is the worst it has been since the country’s independence back in 1963.
The country’s economy has contracted by 41.2% in the second quarter of 2020 according to Bloomberg report, significantly affected by the Circuit Breaker measures announced by the government.
Several months of movement restrictions and workplace closures have battered Singapore’s construction, retail, and tourism sectors, with little improvements in sight for the short term.
Local authorities have also announced that Singapore’s GDP is expected to shrink between 4% – 7% this year, under the assumption that the pandemic situation does not continue worsening (ie: a second wave).
The construction sector was the worst hit so far, contracting 54.7% compared to the previous year’s.
The services sector shrank 13.6% from the previous year’s.
Manufacturing was the only sector to see growth, expanding by 2.5% compared to the previous year’s.
To help alleviate the situation, the government has announced 4 support packages worth close to SGD $100 billion, approximately 20% of the country’s GDP.
These measures include wage support to businesses and cash payouts to adult Singaporeans.