3 Jan 2013

Recession averted in Singapore

8:51 am on 3 January 2013

Singapore avoided a technical recession in the fourth quarter.

The Ministry of Trade and Industry said on Wednesday that gross domestic product rose 1.1% year-on-year in the three months to December from zero growth in the previous quarter.

On a quarter-on-quarter basis, the economy expanded by a seasonally adjusted annualised 1.8%, reversing a revised 6.3% contraction in the third quarter. The figures were based on estimates.

AAP reports analysts feared the economy had likely slipped into a technical recession - two successive quarters of contraction - after Prime Minister Lee Hsien Loong said on New Year's Day that GDP rose 1.2% for the full year.

This was below the government's target for the economy to expand 1.5% - 2.5%.