Updated: 10/13/2012 01:27

Singapore has avoided a technical recession in Q3

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Singapore has avoided a technical recession last quarter, after the government revised its second quarter GDP upwards.

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

The Trade and Industry Ministry also said Singapore is on track to grow by 1.5 to 2.5 percent for the whole of this year.

According to the latest flash estimates, the economy contracted by 1.5 percent in the third quarter, compared with a revision of 0.2 percent rise in Q2.

The weak performance in Q3 was due to a contraction in the manufacturing sector, particularly in the electronics segment.

On a year-on-year basis, the economy grew at a modest pace of 1.3 percent.

The manufacturing cluster, which accounts for a quarter of the economy, grew 0.7 percent, from a year ago, while the services sector output grew over 1 percent.