13 Oct 2012

Singapore economy shrinking

7:00 am on 13 October 2012

Singapore's economy contracted in the July to September period, but has narrowly avoided a technical recession. Gross domestic product shrank 1.5% compared with the previous three months.

However, the Ministry of Trade & Industry said growth in the April to May quarter was revised from a contraction of 0.7% to slight growth of 0.2%.

The BBC reports manufacturing has slowed in recent months, due to weak demand in Europe, the United States and China.

A technical recession is defined as two consecutive quarters of economic contraction.

The ministry said Singapore was still on track to achieve the target growth of between 1.5% and 2.5% for the year.