SINGAPORE (Reuters) - Singapore’s economy will contract by 0.5% in 2020, the city-state’s biggest bank DBS said on Thursday, adding a recession was inevitable due to an expected hit from the coronavirus outbreak.
DBS’s prior estimate was for the economy to grow 0.9%.
“A recession in Singapore appears inevitable, and we have revised our full year GDP growth forecast for 2020 to -0.5% to reflect the recession scenario,” said DBS economist Irvin Seah.
The government has already signalled a chance of a recession this year and cut its growth forecasts.
The possibility of Singapore edging towards its first full-year recession in nearly two decades is firming the case for the central bank to loosen policy.
Reporting by Aradhana Aravindan and Anshuman Daga in Singapore; Editing by Christian Schmollinger