(Apr 22): Singapore will witness a deeper recession this year after the nation extended and tightened its partial lockdown, Citigroup Inc. warned, widening its forecast for an economic contraction.
The city-state’s economy will contract by 8.5% in 2020, down from an earlier estimate of a 6% fall, economists Wei Zheng Kit and Kai Wei Ang wrote Tuesday after Singapore extended “circuit breaker” measures until June 1 to “decisively” bring down coronavirus cases within the community.“
The circuit breaker would cause close to 25%-30% of GDP to come to a standstill, with every month of extension further reducing 2020 GDP by 2% to 2.5%,” the economists wrote. “The technical rebound after the lifting of the circuit breaker on 1st Jun will be capped by continued social distancing and only gradual recovery in exports.”
Read More at The Edge Singapore