Singapore has reduced the GDP growth forecast for 2020 amid the outbreak of coronavirus

Ministry of trade and industry of Singapore has reduced the growth forecast to -0.5% and 1.5%, pointing to a possible recession due to the outbreak of coronavirus, reports the Straits Times.

GDP Growth this year is expected to be about 0.5%. In November, the Ministry predicted economic growth in the range of 0.5-2.5% for 2020.

Singapore is facing a serious impact on the economy due to the outbreak of coronavirus.

exporting to external markets sectors such as manufacturing and wholesale trade likely to suffer from weaker growth in major export markets of Singapore, including China.

the Reduction in the inflow of tourists, especially from China, hit tourism and transport industries. In addition, the spread of the coronavirus may impact on domestic consumption, as consumers reduce shopping and visits to cafes and restaurants.

it is Expected that the city-state will present a major package of measures to support the economy. This can lead to a maximum budget deficit of more than 10 years.

In the fourth quarter of 2019, the Singapore economy grew by 1% yoy, which is better the previous estimate growth at 0.8%.

For the entire 2019, the Singapore economy grew by 0.7%, the weakest rate since 2009.

Production in the manufacturing sector in October-December fell by 2.3% compared to the same period last year.

At the same time, the construction sector recorded growth of 4.3% in annual terms.