Last year, Singapore’s economy shrank by 5.8%. Although this was better than the 6% that had been initially forecast, it was still the worst contraction recorded since the city state’s independence more than 50 years ago.
Major sectors that were most severely affected by the fallout of the coronavirus pandemic included trade and tourism.
Analysts at DC Witter Group say the less severe than expected contraction thanks to an upward revision in the third quarter was encouraging. Singapore’s economy is expected to maintain a gradual recovery during the first half of this year and will likely see an uptick in economic activity in the second half.
“It is hoped that the economy will continue to stabilize during the course of this year,” said an economist at DC Witter Group
Key to the country’s economic recovery is the deployment of vaccines. Vaccinations are already underway with more than 6000 people already having received the vaccination since the country kicked off its vaccination drive on the 30th of December last year. Singapore plans to have 4 vaccination centers in operation by the end of this month and another 4 by the end of February.
As Singapore is a small nation that is heavily reliant on trade, its recovery will hinge on a wider global economic recovery.