Singapore to release balance of trade for March

Singapore will release its trade balance for March today.

The vital sectors of commerce and tourism were hit hard by the COVID-19 pandemic, contributing to Singapore’s worst year of economic performance. The country recorded a substantial drop in activity in 2020 with a GDP contraction of 5.8%.

The city-state will maintain a public deficit for the second consecutive year to support its economy. Singapore has deployed billions of dollars to underpin businesses and access vaccines; the government intends to finance these investments by drawing on the budgetary reserves accumulated before the pandemic. Although the economy has started to show signs of recovery in recent months, the crisis has brought to light its intrinsic weaknesses.

Singapore is among the countries most integrated into value chains centred on China and the slightest slowdown in growth directly affects its fortunes. The vulnerability of the Singaporean economy was first revealed by US-China geopolitical tensions. Since the country is dependent on international trade and vulnerable to the structural slowdown of its trading partners’ economies, expect Singapore’s economy to remain hampered by economic and health uncertainty. In the short-term, Singapore will have to find solutions to social challenges such as income inequality, which has worsened during the pandemic.