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20 Feb 2020
Fitch: Singapore will still be among those most affected by coronavirus outbreak, despite budget measures
Fitch Ratings, in its latest assessment of Singapore’s economy, notes that Singapore’s economy will still be among those most affected by coronavirus outbreak, despite budget measures.
Key quotes:
Fiscal space facilitates Singapore’s use of stimulus measures.
Despite increased deficit, Singapore govt will still meet its rule of maintaining a balanced budget over course of single parliamentary term.
New budget will widen Singapore’s overall central government deficit to 2.1% of GDP in FY20 from about 0.3% in FY19.
Believes that Singapore’s 2020 economic growth is now likely to be closer to 0.6%.
Singapore’s economy will still be among those most affected by coronavirus outbreak, despite budget measures.
Singapore’s public finances remain on sound footing and govt's conservative approach to management of public finances provides support to rating.
Public health concerns will dampen consumer and business sentiment within Singapore.