COVID-19 and Singapore's Economy: Macroeconomic Impacts and Policy Responses

Meiling Peng

Strategic Management Insights, 2025, vol. 2, issue 1, 32-37

Abstract: This study investigates the macroeconomic consequences of the COVID-19 pandemic on Singapore, a small open economy vulnerable to global disruptions. The analysis begins by benchmarking Singapore's pre-pandemic economic performance, characterized by high GDP per capita, stable inflation, and low unemployment. A comparative framework is then established between the COVID-19 recession and the 2009 Global Financial Crisis (GFC), revealing the pandemic's amplified severity through simultaneous supply-chain disruptions and demand collapse. Utilizing IS-LM and AD-AS models, the paper evaluates Singapore's crisis response strategy, particularly expansionary monetary policies and targeted fiscal measures such as wage subsidies and sector-specific stimulus packages. Key findings highlight labor market adaptations, consumption volatility, and intervention efficacy. While proactive policies facilitated short-term recovery, the study underscores persistent challenges—including fiscal sustainability risks, overreliance on government aid, and structural labor market imbalances—that threaten long-term resilience. These insights contribute to the discourse on crisis management in trade-dependent economies.

Keywords: Singapore economy; COVID-19; macroeconomic policy; fiscal stimulus; monetary policy (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://soapubs.com/index.php/SMI/article/view/345/348 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:axf:smiaaa:v:2:y:2025:i:1:p:32-37

Access Statistics for this article

More articles in Strategic Management Insights from Scientific Open Access Publishing
Bibliographic data for series maintained by Yuchi Liu ().