The Biggest Recession in The History of Singapore, Economy shrinks 41.2%

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Endless watchdogs of the epidemic are constantly engulfing economically developing countries. Many of the world’s fastest-growing economies are already on the list. The new addition to this list is Singapore. The financial growth rate of this financially prosperous city-state has come to a standstill. The city-state has been in the throes of a recession for the past few months. The city’s economic growth is expected to slow down further, in line with economists’ expectations.

 

According to economists led by Reuters, the city-state’s economic growth rate was expected to be 37.4%. In reality, however, these figures are far superior. The impact of a massive epidemic has actually been reduced by 95.95%.

In addition, the city-state has seen a sharp decline in GDP. In this case too, there are many differences in the quality of reality from the approximate mean. According to economists, in the basis of one year the GDP (Gross domestic product) contraction is projected to shrink by 10.5%, but has shrunk by about 12.6%.

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This seems to be a big push for financial prosperity like Singapore. According to prominent economist, the city’s GDP (Gross domestic product) will fluctuate between -4% to -7% this year. This is the all time lowest GDP growth in the Singapore’s history.

The tourism industry is a major part of Singapore’s economy, but the long lock down and devastation caused by the Corona virus pandemic has hit the country’s tourism industry hard. This has further fueled the city’s financial contraction. However, when the lock down on the country was relaxed last June, Singapore’s financial system continued to function.

To revive Singapore’s stagnant economy, the Singapore government has unveiled four stimulus packages worth about 100 billion Singapore dollar. This includes

  1. Increasing employment in the public and private sectors.
  2. Relieve small and medium enterprises and waive their rent.
  3. Provide tariff exemptions to companies in various industries.
  4. And provide financial assistance to small and medium enterprises affected by the lock down.

According to a report released by the Ministry of Health on Monday, a total of 46,283 cases of the virus have been detected in the country so far, of which about 42,541 have been already recovered and 26 deaths have been confirmed. The country has one of the highest rates of virus transmission in mid-April, but the number of infections has been steadily declining due to the rapid lock down. With only 5.7 Million populations, corona virus infection is highest in Southeast Asia.

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