SINGAPORE (May 12): Although the Singapore government has begun easing some restrictions, Morgan Stanley cautions that the Republic could be among the last to recover to pre-Covid-19 GDP levels.
While China will arguably lead the pack with a recovery by 3Q2020, economist Deyi Tan says export-oriented economies such as Singapore, Thailand and Malaysia are likely to take until 1Q2021 to recover.
“This group is some of the most export-oriented in Asia ex-Japan (AxJ). Some have also implemented lockdowns, leading to a double hit on exports and domestic demand. We think this group will likely take longer to recover, possibly by 1Q21. Growth risks are skewed to downside,” says Tan.