Singapore is one of the most popular tourist destinations in the world. Millions of people from all over the world flock to this country due to its strong infrastructure, modern facilities and multiple tourist attractions. It seems that the country’s economy has not been doing well. However, one of its saving graces during this downturn is tourism. Despite the decline in the country’s gross domestic product, or gross domestic product, Singapore’s tourism industry is doing quite well.
Singapore’s tourism industry protects it from recession
According to the data provided by the country, the influx of tourists, in turn boosting the country’s service sector, will help avoid the country falling into an outright recession. Singapore’s gross domestic product is expected to grow between 0.5% and 2.5%, according to the authorities’ estimates.
Gross domestic product has so far contracted at an annualized rate of 0.4%, according to the final first-quarter value released by the Ministry of Trade and Industry. However, the decline was better than experts expected. They were expecting a 0.7% drop, but it didn’t.
This means that GDP was slightly better than expected. The Singapore dollar was also down 0.1% against the U.S. dollar. Officials also don’t see a technical recession at this point.
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GDP falls; economy still better than expected
This particular news also means that Singapore’s tourism industry is not suffering as much as other industries. According to an article published in the Hindustan Times, Singapore’s economy is heavily dependent on trade and thus at risk from any business shocks that may occur.
Singapore’s most important trading partner is China, and outbound cargo volumes have fallen sharply, contracting every month. Yet despite the bleak global outlook, tourism is thriving.
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