SINGAPORE: Singapore`s virushit economy could shrink by as much as seven per cent this year the worst reading since independence the government said on Tuesday,asitunveiled afreshmultibillion dollar stimulus package.

The city-state is seen as a bellwether of the global economy, and the forecast historic contraction highlights the extreme pain being wrought on countries by the killer disease. The warning came asSingapore`s deputy prime minister unveiled a fresh support package worth Sg$33 billion ($23.2bn) for the troubled city, which has been crippled by months of lockdowns around the world.

The trade ministry`s forecast which was a downgrade from the maximum 4pc contraction predicted in March came as official data showed the economy shrank 0.7pc year-on-year in the first three months of 2020, while it reduced4.7pc from the previous quarter.

The unancial hub is one of the world`s most open economies, and is usually hit hardest and earliest during any global shock.

The ministry said the new estimate was made `in view of the deterioration in the external demand outlook` and the partial lockdown imposed domestically.

A contraction of 7pc would be the worst since the city`s independence in1965.-AFP