SINGAPORE - Singapore avoided a technical recession as data released Friday showed the economy grew almost 10 per cent in the first quarter, recovering from a slump in the previous three months.
There were initial worries the city-state could be headed for a technical recession, defined as two straight quarters of economic contraction, when gross domestic product (GDP) shrank 2.5 per cent quarter-on-quarter in the October-December period.
But the trade ministry said the first-quarter GDP expanded 9.9 per cent on a quarter-on-quarter annualised basis, driven by a turnaround in the manufacturing industry.
Manufacturing, a key pillar of the trade-driven economy, grew 14.7 per cent, swinging back from a decline of 11.1 per cent in the previous quarter, the ministry said.
The government has said it expects the economy to grow 1.0 to 3.0 per cent in 2012 from 4.9 per cent last year.