Singapore economy contracts 1.5%

<p>Singapore’s economy has contracted, but it has managed to avoid recession.</p>

Singapore's economy contracted between July and September, but the city-state has narrowly avoided recession.

The BBC reports that Ministry of Trade and Industry figures recorded gross domestic product contraction of 1.5 per cent over this three-month period compared to the second quarter.

However, the April to May timeframe's growth was revised up from shrinkage of 0.7 per cent to slight growth of 0.2 per cent.

Singapore has struggled as the strong dollar makes exports more expensive, cutting the profits earned by companies that trade overseas.

Furthermore, the factory sector has slowed in recent months as weak demand from the key markets hit export-dependent Singapore.

At close this morning (October 12th), the major Asia Pacific benchmarks were mixed, with the Nikkei 225 in Tokyo sliding by 0.1 per cent to 8534.1 points and the Hong Kong Hang Seng making gains of 0.6 per cent to an index value of 21132.2 points.

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