Singapore's economy suffered its worst ever annual contraction in 2020 as the coronavirus pandemic hammered the city-state's vital trade and tourism sectors, official data showed on Monday.
A little girl touches a snowman light decoration at the "Festival of Lights" held in Singapore's Jurong Lake Gardens on Dec. 20, 2020. The "Festival of Lights" will be held from December 18, 2020 to Sunday. Photos: Xinhua
But the 5.8 percent decline was not as bad as feared - official forecasts had predicted a fall of up to 6.5 percent - as economic activity picked up with the easing of curbs.
The financial hub plunged into its first recession since the 2008 global financial crisis in the second quarter when the government closed most workplaces as part of drastic measures to contain infections.
Being one of the world's most open economies, Singapore is seen as a bellwether for the health of global trade, and its economy's dramatic deterioration rang alarm bells. But curbs were eased in the second half of 2020 and key sectors of the economy, such as manufacturing, have begun to recover.
In the fourth quarter, the economy shrank 3.8 percent year-on-year, less than expected, according to preliminary growth data released by the trade ministry.
Song Seng Wun, a regional economist with CIMB Private Banking, told AFP the contraction was not as bad as feared due to strong exports of some goods. Song said he expects a "rebound of around 6 percent" in 2021.