Singapore’s economy contracted in the July to September period, but has narrowly avoided a technical recession.    Asian countries have seen growth slow as a result of dwindling exports to Europe, the US and China.    Gross domestic product shrank 1.5{6060b2de664e4eaa3e7b7e86961ce2c4bbd7a29b6c1097abf8257a4e5b07383e} compared with the previous three months, the Ministry of Trade and Industry said.   However, growth in the April to May quarter was revised from a contraction of 0.7{6060b2de664e4eaa3e7b7e86961ce2c4bbd7a29b6c1097abf8257a4e5b07383e} to slight growth of 0.2{6060b2de664e4eaa3e7b7e86961ce2c4bbd7a29b6c1097abf8257a4e5b07383e}.

Many analysts were expecting the government to step in and loosen monetary policy to weaken the Singapore dollar.   A strong dollar makes exports more expensive overseas, cutting into the profits earned by exporters.   However, the Monetary Authority of Singapore (MAS) said it would maintain its policy of allowing a modest and gradual appreciation of the currency.

The Ministry of Trade and Industry said Singapore was still on track to achieve the target growth of between 1.5{6060b2de664e4eaa3e7b7e86961ce2c4bbd7a29b6c1097abf8257a4e5b07383e} and 2.5{6060b2de664e4eaa3e7b7e86961ce2c4bbd7a29b6c1097abf8257a4e5b07383e} for the year.

Credit: BBC/Reuters