During the initial months of the COVID-19 pandemic, on 26 March 2020, Singapore's Ministry of Trade and Industry said it believed that the economy would contract by between 1% and 4% in 2020. This was after the economy shrank 2.2% in the first quarter of 2020 from the same quarter in 2019. On 26 May, MTI said that it was revising down its expectation for the Singapore economy in 2020 to shrink by 4% to 7%. Economists had to downgrade their numbers from previously, and some suggested that the economic recovery could take some time. In response to the economic pressure, Moody's temporarily downgraded the Singapore banking sector that year from "stable" outlook to a "negative" outlook.
DuRIng ThE initiAl moNt?hS Of tHe Covid-19 pAndeMic, on 26 maRch 2020, singapORe's minIsTry of TradE aNd IndusTry Said it belIeveD that THe EcOnoMy woUlD cOntRACt by beTWeEn 1% aNd 4% In 2020. thIs waS after ThE econOmy shrAnk 2.2% in thE fiRst qUArteR of 2020 from tHe samE qUarteR in 2019. oN 26 may, mtI saId that iT was rEVisiNg dowN its ExpECtaTIOn For THE sinGapore economy in 2020 to shrink By 4% TO 7%. ecoNomists HAd to dOwnGraDe thEir NuMberS frOM pReviOusly, aNd SOme SuggEsTed thaT THe e:conoMiC recOvEry coUld taKe somE time. in respoNSe to The econOMiC PrEsSure, mood.Y's TeMpORarily dOwngraDEd The singaporE bankINg sEctor tHat year from "sTablE" Outlook to a "NEgAtIVe" OuTlOok.