Singapore's economy shrinks 1.1 pct in Q2

[July 13, 2012]  SINGAPORE (AP) -- Singapore's economy shrank in the second quarter as a global slowdown undermined demand for the city-state's exports, the Trade and Industry Ministry said Friday.

Gross domestic product contracted at a seasonally-adjusted, annualized rate of 1.1 percent in the April to June period from the previous quarter, when it expanded 9.4 percent, the ministry said.

Manufacturing in the second quarter dropped 6 percent, reversing from 21 percent growth in the first quarter, while services grew just 0.4 percent and construction 0.3 percent, the ministry said.

Singapore relies on trade, finance and tourism to fuel one of the richest living standards in the world. The government expects the economy to grow as little as 1 percent this year, down from 4.9 percent growth last year.

The economy expanded 1.9 percent in the second quarter from the same period a year earlier, up slightly from 1.4 percent growth in the first quarter.

The GDP results released Friday were preliminary data mostly from April and May, the ministry said. The ministry is scheduled to release more comprehensive results about the second-quarter economy next month.

[Associated Press]

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