We are looking at grim economic numbers as the Covid-19 pandemic batters businesses in Singapore. In the latest labour market report by the Ministry of Manpower (MOM), Singapore had a record decline in total employment in 1Q2020 and the jobless rate was the highest in a decade. Analysts polled by the Monetary Authority of Singapore (MAS) had a pessimistic view of the economy, forecasting Singapore’s GDP to contract by 5.8% in 2020, a sharp reversal from the previous forecast of 0.6% growth.
With recession looming, many prospective home buyers are wondering if they should hold back their purchases and wait for property prices to crash before entering the market.
How Long Will The Crisis Last?
According to the Organization for Economic Co-Operation and Development (OECD), there are 2 possible scenarios: a single-hit scenario and a double-hit scenario. In both scenarios illustrated below, World GDP will take at least 2 years to recover to pre Covid-19 level. This outlook is worse than the Global Financial Crisis in 2008.