SINGAPORE: COVID-19 support measures knocked off 4 percentage points from the projected resident unemployment rate last year, the Ministry of Finance (MOF) said on Thursday (Feb 17).
The resident unemployment rate could have hit 7.5 per cent last year without support measures from the Government, the ministry said in a report assessing the impact of key COVID-19 Budget measures over two years.
Instead, it fell to 3.5 per cent in 2021, a difference of 4 percentage points, MOF said. For 2020, support measures chipped 2 percentage points off the projected unemployment rate, from 6.1 to 4.1 per cent.
Government support over 2020 and 2021 helped to buttress both the GDP and labour market, reducing the impact of the COVID-19 pandemic on the economy, said the report.
MOF estimated that Budget measures, along with “accommodative” monetary policy, supported Singapore’s real GDP growth by 0.8 percentage points in 2021, raising it from 6.8 per cent to 7.6 per cent.
It estimated that the economy had performed better by 6.6 percentage points in 2020, despite a year of negative growth (-4.1 per cent). That means GDP would have fallen by more than 10 per cent without the support measures.