The Monetary Authority of Singapore (MAS) provided a sobering assessment of the state of the Singapore economy, which is in the throes of a recession that is likely to be unusually deep and protracted. In the October edition of its macroeconomic review, the MAS pointed out that the recession is also atypical. Peak-to-trough declines in real private consumption exports, imports and private investment have been sharper than usual and the drop in employment has been bigger.

Recovery from the second quarter has also been patchy. Some sectors are less affected, including manufacturing, wholesale trade, parts of transport, information and communications technology, financial services and some domestic services, which collectively account for about 63 per cent of gross domestic product (GDP). At the other end of the spectrum are the worst-hit sectors, including travel-related industries; some consumer-facing sectors like food services, retail and land transport; and construction. Although they account for 12 per cent of GDP, they have indirect spillovers on the economy. Moreover, some, such as travel-related sectors, may face prolonged headwinds till 2022.