Singapore avoids technical recession in the fourth quarter of 2012

Singapore's economy performed better than expected in the fourth quarter despite talks of a technical recession.

The economy grew by 1.8 percent on a quarter-on-quarter comparison, an upturn from the contraction of 6.3 per cent in the previous quarter.

It also grew at a modest pace of 1.1 per cent on a year-on-year basis, an improvement from the flat growth in the previous quarter.

For the whole of 2012, the economy is estimated to have grown by 1.2 per cent.

This is slightly lower than the government's growth forecast of around 1.5 per cent, as the weakness in the manufacturing sector continued to be a drag on the economy.

On a year-on-year basis, the  sector contracted by 1.5 per cent in the fourth quarter, following the 1.6 per cent decline in the preceding quarter.

The construction sector grew by 5.9 per cent on a year-on-year basis, moderating from the 7.7 per cent growth in the preceding quarter.