Read the following extract and answer the following questions:

The Ministry of Trade and Industry (MTI) forecast that the Singapore economy will shrink by 4 per cent to 7 per cent, worse than the 1 per cent to 4 per cent contraction earlier predicted - making it Singapore's worst recession since independence in 1965.

While the Government may continue to cushion the economic fallout of the Covid-19 pandemic, the outlook for the economy and especially jobs may further deteriorate.There is still considerable uncertainty and the country must be prepared for more retrenchments, said a Ministry of Manpower official at a virtual press conference yesterday.

Any recovery, which is dependent on the success of fiscal and monetary measures at home and abroad, is likely to take shape only sometime in the second half of the year, MTI added at the briefing.

The ministry said there were significant uncertainties in the global economy, with a risk that subsequent waves of coronavirus infections in major economies such as the United States and euro zone could further disrupt economic activity.

Also, a growing perception of diminished ability to use fiscal and monetary stimulus in many major economies could damage confidence in the authorities' ability to respond to shocks."Against this backdrop, the outlook for the Singapore economy has weakened further since March," MTI said.

Briefing the media, MTI Permanent Secretary Gabriel Lim said that outward-oriented sectors such as manufacturing, wholesale trade, and transportation and storage will be adversely affected by the sharper-than-expected slowdown in many of Singapore's key markets, as well as more prolonged supply chain disruptions.

"The economic environment remains extremely uncertain at this juncture, especially given the phased easing of Singapore's circuit breaker measures," he said.

Source: Subhani O., (2020, May 27). Singapore headed for deeper recession and more job losses. Retrieved from https://www.straitstimes.com/business/economy/singapore-headed-for-deeper-recession-and-more-job-losses

(1) Define recession.

(2) Based on the forecast by the Ministry of Trade and Industry (MTI)

"Singapore economy will shrink by 4 per cent to 7 per cent, worse than the 1 per cent to 4 per cent contraction earlier predicted - making it Singapore's worst recession since independence in 1965."

Identify FOUR reasons from the above article to account for the downward revision (growth rate would decline worse than what was predicated earlier) of Singapore's growth estimate).

(3) Identify TWO possible ways the Singapore government can do to mitigate the recession. (Hint: you may want to find out more about the budget stimulus package online)