2020 brought an overall contraction to the Singapore economy, according to advance estimates released on January 4 by the Ministry of Trade and Industry. GDP in every quarter was lower than in 2019, with the largest drop in Q2—when the city-state went into lockdown to control the spread of COVID-19 and shut down all non-essential businesses. Overall, the Singapore economy shrank by 5.8 percent as compared to 2019, more or less in line with predictions last year.

The hardest hit sectors were construction, which could not operate at all as work sites across the island were shut down; accommodation and F&B, which completely lost tourist income when the borders were closed to all short-term visitors in March; and wholesale and retail trade, transportation, and storage, which suffered from the general slump in the global economy. These three sectors remained significantly in the red at the end of 2020.

However, the ministry's figures also indicate a slow recovery across all sectors, with the losses of the second quarter becoming less severe over the next six months after the “circuit breaker” lockdown was eased in June.

Entering 2021, Singapore has reopened its economy further, with more activities allowed, retail and F&B businesses permitted to increase the amount of foot traffic, and the cap of event sizes also increased. The city-state is also very slowly reopening its borders, with long-term international visitors allowed to return and bilateral agreements for safe travel to and from other countries now under discussion. The Singapore-Hong Kong travel bubble which was proposed last year, but ultimately cancelled as COVID-19 cases surged in Hong Kong, may also be reconsidered for this year.