Coronavirus: Singapore economy seeing signs of stabilisation after worst-ever slump, PM Lee says

‘We look forward to a rebound in 2021, although activity is likely to remain below pre-Covid-19 levels for some time,’ he said in a New Year’s address

Singapore’s economy has been hammered by the pandemic, which has slammed mainstays such as tourism and trade

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Singapore Prime Minister Lee Hsien Loong. Photo: DPA

Published: 7:16pm, 31 Dec 2020Updated: 7:15pm, 31 Dec 2020

After suffering its worst economic downturn since independence, Singapore is expecting to see a rebound in 2021, Prime Minister Lee Hsien Loong said on Thursday, echoing other top officials to caution that the recovery will be uneven.

“Economically, we are not yet out of the woods either, but we are beginning to see signs of stabilisation,” with employment picking up and multinational firms making new investments, Lee said in a New Year’s address.

“We look forward to a rebound in 2021, although the recovery will be uneven, and activity is likely to remain below pre-Covid-19 levels for some time.”

Singapore’s economy has been hammered by the pandemic, which has slammed mainstays such as tourism and trade. Gross domestic product is expected to contract 6 per cent to 6.5 per cent this year, the Ministry of Trade and Industry said in November, before growing 4 per cent to 6 per cent in 2021.

Fourth quarter and full-year GDP data due Monday will likely show that a recovery that began in the third quarter continued in the final three months of the year, according to economists surveyed by Bloomberg. Despite that, the full-year contraction is likely to be the most severe since the country’s independence in 1965.

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