Singapore is among the countries projecting a decrease in economic growth.

Despite many countries starting to reopen businesses and resume daily activities, the global economy has already suffered significant damage from the impact of the COVID-19 pandemic. From disruptions in business operations to a decline in consumer spending, various sectors of the world economy have experienced notable contractions. According to current assessments, it will take time for things to return to pre-pandemic levels.

The latest addition to the list of countries facing economic contraction is Singapore. The trade ministry of this Southeast Asian nation has estimated that Singapore’s economy could shrink by at least 7% this year. This decline could result in Singapore’s most significant recession since gaining independence.

“Considering the weakening demand for Singapore’s exports and the anticipated economic effects of the central bank’s measures, the GDP growth projection for Singapore in 2020 has been revised downward,” the trade ministry stated on Monday.

Initially, last month’s forecasts predicted a contraction of around 3%. However, those projections did not factor in the severe impact on two of Singapore’s key industries: tourism and trade. Singapore boasts the world’s second-busiest seaport and typically hosts approximately 15 million tourists annually, triple its population. However, with the tourism sector virtually halted by the pandemic, inbound and outbound travel has significantly slowed, affecting the country’s economic vitality.

If the pandemic can be resolved promptly, Singapore and other affected nations have a chance to recover over time. Yet, the major variable at the moment is the uncertainty surrounding the pandemic’s duration worldwide. “Despite the downward revision, there remains considerable uncertainty regarding the duration and severity of the COVID-19 outbreak, as well as the economic recovery trajectory in both the global and Singaporean economies,” the ministry’s statement emphasized.