The Singapore government has launched the third round of fiscal support measures dubbed the Solidarity Budget to shore up struggling businesses, save jobs and support households to weather the coronavirus (Covid-19) outbreak with circuit breaker measures taking effect from 7 April to 4 May 2020.
It will inject a further S$5.1 billion to augment the earlier Unity and Resilience budgets raising the total outlay to date to S$59.9 billion (12% of GDP) to counter the negative fallout on the economy from Covid-19 on domestic consumption, industrial output and trade.
The official GDP forecast range has been lowered to -4.0% to -1.0% from -0.5% to +1.5% earlier. We have since also downgraded our full-year GDP growth outlook to minus 2.5% for 2020 as four key areas will affect economic fundamentals in the wake of the circuit breaker measures:
We are keeping our GDP growth and inflation outlook at -2.5% and -0.3% respectively for 2020. We see further downside risks to Singapore’s growth and think that the unemployment rate could rise beyond our projected 3.5% in the wake of the circuit breaker measures.
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