Singapore Experienced The Worst Recession, Minus 5.8 Percent In 2020

Marina Bay Sands Singapore. (Photo: Unsplash)

JAKARTA - Singapore experienced its worst recession in 2020 due to the COVID-19 pandemic, although economic contraction eased in the fourth quarter.

Quoting Reuters on Monday January 4, Singapore's economy is minus 5.8 percent in 2020. The figure is slightly better than the official estimate for a contraction of between 6.5 percent and 6 percent.

The Singapore government itself previously said it expects gross domestic product (GDP) to grow 4 percent to 6 percent in 2021.

The Singapore Ministry of Trade and Industry said that GDP contracted by 3.8 percent in October-December on an annual basis. This figure is improving from a decline of 5.6 percent in the third quarter.

Economists surveyed by Reuters expected a decline of 4.5 percent in the fourth quarter. GDP grew 2.1 percent on a quarterly basis in October-December, slowing from a 9.5 percent expansion in the third quarter.

The Singapore government has spent about 75.45 billion US dollars or 20 percent of GDP on virus-related assistance to support households and businesses.

Singapore has largely relaxed rules on the COVID-19 virus, although most borders remain closed. Singapore also started a COVID-19 vaccination program last week.

The Singapore government wants to open up more vaccine-assisted economic activities in the country that depends on travel and trade.