11 Nov Economic Growth in Singapore during COVID-19 Pandemic
All countries experienced decreasing economic growth during the COVID-19 pandemic. The pandemic has been declared by the World Health Organization or known as WHO at the end of January 2020. The spread of the Corona Virus became a massive diffusion in early March 2020. Since that, governments all over the world decided to restrict offline activities that involved many interactions between one and another.
One of the effects of restricted activity is in the economic field, especially for economic growth. Food security and nutritional status were affected by the decreasing economic growth. Besides, many other chains from other fields are also affected by the decreasing economic growth. This happened without the exception of Singapore existence which had great economic growth before the COVID-19 pandemic has occurred.
Factors that Affect the Economic Growth
Many factors were successful to make many sectors were out of action. Let’s take a look at the two factors below!
Firstly, the tourism field experience the air passengers and tourist arrival has come decrease. There is no mobility for tourists starting from 2020 to early 2021. However, the tourism sector is gradually awakening since the government provide a regulation about vaccination for those who will go on trip or travelling. This regulation was followed by the strict and tense health protocol including the diminution of the passengers in transportation to cut off the spread of the Corona Virus.
Border and travel restrictions will have a significant impact on tourism in Singapore and the impact of COVID 19 on tourist earnings in Singapore alone may result in a loss of millions in other countries tourism expenditure. This figure is expected to skyrocket in the coming months. As a result, the economic growth is also rising up slowly.
High Price of Supplies
Inflation also does not rule out the possibility to affect the economic growth during the COVID-19 pandemic. This occurred since the high demand for health as well as basic needs, foods, and other goods. Society and people who did not have any important purpose in doing something outside of the house are experiencing panic buying, as a result, many shops, stores, and even wholesalers are overwhelmed by this. Many goods are out of stock that leads to rareness, scarcity and inflation can occur during this condition. So that, in early April the Singaporean government declared about monetary policy that can consider the improving economic backdrop and inflation risks.
An increased reprioritization of government expenditure to combat the COVID-19 pandemic will have an impact on allocations to other sectors, such as agriculture, with long-term implications for food production and supply. The continent’s economic ramifications might be severe and long-term. While certain worldwide economic repercussions of COVID 19 have already been identified, there has been less discussion of the effects on specific economies, and much less discussion of the impact on regional food security. Given its relatively strong healthcare system, excellent infrastructure, and cross-border population movement, a pandemic is largely expected to affect Singapore proportionately.