Singapore economy shrinks

Singapore’s economy contracted in the fourth quarter as manufacturing plunged amid a slowdown in global trade, the government said.

Gross domestic product shrank 4.9% in the October to December period from the previous quarter, the second contraction in three quarters, the Trade and Industry Ministry said. Manufacturing slumped 22% from the previous quarter while construction fell 6.7%.

Singapore expects the growth of its economy – which relies on manufacturing, finance and tourism – to slow to as little as 1% this year as a faltering global economy undermines demand for the city-state’s exports.

The economy grew 4.8% last year, down from a 15% expansion in 2010. GDP grew 3.6% in the fourth quarter from a year earlier.