Singapore will increase the budget deficit to mitigate the impact of coronavirus

Singapore is expected next week will present a major package of measures to support the economy amid the outbreak of coronavirus. This will lead to the maximum budget deficit of more than 10 years, according to Reuters.

Singapore’s Economy, business and tourist center of South-East Asia is expected to decline this quarter after growing 0.7% in the last year. Economists predict the budget deficit in amount of 1.4-2% of GDP.

the Largest Bank of Singapore DBS expects a deficit of 7.9 billion Singapore dollars, reaching a maximum in 2005.

an Outbreak of coronavirus in China can cause a blow to the Singapore economy, given its close economic ties with China. It is expected that this year the inflow of tourists to Singapore will be reduced by almost a third.

economists at Citi and Maybank, the budget will be laid a package of incentives worth at least 700 million Singapore dollars (505 million U.S. dollars) to mitigate economic impacts of coronavirus.

the incentives can include a refund of real estate tax for retailers and hotels, as well as a decrease in fees from foreign workers in sectors related to tourism.