On Monday, Singapore has downgraded its growth forecast for the year 2020 as the country is grappling with the highest number of cases of coronavirus outside of China.
The trade and industry ministry has made a downgrade of their growth forecast for the year 2020 as the economy of Singapore has been expected to slow down by close to 0.5% in the year, and has downgraded their range of forecast for the change in the GDP annually to be in the range of 0.5% – 1.5%. This is worse than what the earlier projections of growth were around 0.5% to 2.5%.
The forecast had been premised earlier on a growth pickup in the world in a modest manner along with a major recovery in the electronics cycle of the world in the year 2020. After that, the coronavirus outbreak in 2019 has affected the countries of Singapore, China and a lot of other countries in the world as per the ministry in a statement.
The ministry has further outlined how the outbreak of the virus may affect the economy of Singapore. The sectors which are outward-oriented like wholesale trade and manufacturing are going to be hit by the weaker growth in the demand markets like China.
The transport and tourism sector have been affected badly by a major fall in the tourist arrivals particularly the ones who are coming from China.
The projected fall in the consumption domestically has been there due to the people cutting back on activities like dining out and shopping.
The situation around the coronavirus has been evolving still and the organizations have been monitoring the impacts closely on the economy of Singapore.