In a press release today, the MTI said that Singapore GDP growth could be downgraded by – 0.5 per cent to 1.5 per cent this year.
The economy would be affected by supply chain disruptions arising from prolonged factory closures and labour shortages in China.
The outbreak has also affected the tourism sectors. There is a sharp fall in tourist arrivals, particularly from China.
According to CNBC news, Japan’s economy has shrunken to its worse due to the growing coronavirus risks.
Analysts said the epidemic which is damaging business and tourism could undermine growth in the current quarter and push Japan into recession.
“There’s a pretty good chance the economy will suffer another contraction in January-March. The virus will mainly hit inbound tourism and exports, but could also weigh on domestic consumption quite a lot,” Taro Saito, an executive research fellow at NLI Research Institute was quoted by CNBC as saying.
“If this epidemic is not contained by the time of the Tokyo Olympic Games, the damage to the economy will be huge,” he said.
Worries about the spread of the coronavirus and its hit to the global economy kept Japanese manufacturers’ mood gloomy in February, a Reuters poll found.
Investors are now watching to see if growth will rebound in the current quarter as the Bank of Japan projects, amid fresh risks from the coronavirus that have forced factories in China to shut down and led to a sharp drop in Chinese tourists.