Singapore cuts 2020 GDP outlook again as virus batters economy

Singapore's main price gauge contracted for the third consecutive month in April, falling 0.3% and hitting a fresh 10-year low.

Analysts expect the trade-reliant economy to see a deeper contraction in the second quarter due to a two-month lockdown, dubbed a "circuit breaker" by authorities, in which most workplaces closed to curb the spread of the novel coronavirus.

The city-state has among the highest number of infections in Asia and has said that easing of the lockdown from next month will only be done gradually.

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"The downward revision...implies a significant deterioration in the second-quarter momentum due to the circuit breaker period as well as a weak recovery trajectory," said Selena Ling, OCBC Bank's head of treasury research and strategy.

The government first flagged the possibility of recession in February when it cut its 2020 GDP forecast to -0.5% to 1.5%, from 0.5% to 2.5% previously.

Singapore's finance minister is set to deliver the latest in a string of multi-billion-dollar economic packages to offset the hit to businesses and households from the pandemic later on Tuesday.