Singapore Economy Shrinks 5.8% Last Year Due to COVID-19... Largest Ever GDP Decline

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Singapore's economy contracted by about 6% last year due to the impact of the novel coronavirus disease (COVID-19).

On the 4th, Singapore's Ministry of Trade and Industry (MTI) announced that Singapore's gross domestic product (GDP) decreased by 5.8% last year. This is the largest annual GDP decline on record.

Singapore's economy, which is highly dependent on trade, suffered severe damage from the COVID-19 crisis. The tourism industry also shrank due to COVID-19.

However, this figure is better than the 6-6.5% contraction initially forecasted by the Singapore government.

According to MTI, the economy showed signs of recovery in the second half of the year as measures to resume economic activities were implemented.

In particular, the fourth quarter recorded a 3.8% decline compared to the previous year, performing better than expected. The third quarter economic result was a -5.6% growth.

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