Singapore may avoid technical recession for now

Singapore Prime Minister Lee Hsien Loong has hinted that the city state may well avoid a technical recession as the economic growth figures for the second quarter may be revised upwards to positive grounds, local media reported on Wednesday. The flash figures announced by the Ministry of Trade and Industry earlier showed that the Singapore economy contracted by 0. 7 percent quarter on quarter. The revised figures are expected to be released on Friday. The flash estimates for the third quarter growth are not expected to be in good shape, as manufacturing and industry output figures already released point to a possible contraction in the third quarter. Lee told reporters in Wellington on Tuesday that the second quarter figures may be revised upwards into positive territory. "I think that the second quarter numbers may look a little better than the first estimates. So you might technically avoid a technical recession," local daily Straits Times quoted Lee as saying. But Lee said that he expected slower growth going ahead. "If the second quarter numbers turn out to be positive then technically (a recession) wouldn't happen for a while. But you are talking about growth around 1, 2 percent. We don't have a lot of margin for error," the prime minister added.