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Outlook for post-Covid recovery clouded, recession could hit 'within next 2 years': PM Lee

Prime Minister Lee Hsien Loong speaking at the May Day Rally.

Prime Minister Lee Hsien Loong speaking at the May Day Rally.

The outlook for Singapore's post-pandemic recovery has clouded and the risks have grown considerably, particularly due to the impact of Russia's invasion of Ukraine, Prime Minister Lee Hsien Loong said on Sunday (May 1).

He warned that there may be a recession within the next two years.

Speaking at the May Day Rally, Mr Lee said that while the Government is doing all it can to cushion the impact of the war on Singaporeans and alleviate cost of living pressures, Singapore must be prepared for more economic challenges ahead.

And due to the increase in energy prices caused by these "global headwinds", Singapore will be set back about S$8 billion a year, he added.

Mr Lee said that as the war in Ukraine continues, there is "no good outcome in sight", and he foresees that the fighting will likely drag on for "quite a while longer".

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