Singapore economy has recorded an estimated growth of about 1.1 per cent during the fourth quarter of 2012 compared to the same quarter of the previous year.

The Ministry of Trade and Industry said that the economy grew 1.1 per cent n the quarter compared to flat growth rate in the third quarter. On the seasonally-adjusted annualised basis, the economy grew by 1.8 per cent in the fourth quarter compared to a contraction of 6.3 per cent in the previous quarter.

According to estimates, the economy has grown by 1.2 per cent, which is a bit lower than 1.5 per cent forecasts for the economy as the manufacturing sector of the economy continued to remain weak. The manufacturing sector contracted by 1.5 per cent in the fourth quarter compared to the same quarter of 2011 and the sector had fallen 1.6 per cent in the previous quarter.

The ministry had earlier warned that the growth rate could slip below the forecasted level if the economy's foreign oriented sector continues to see weakness in the final quarter of the year. It said that the electronics manufacturing sector will continue to see a slowdown due to lower external demand. It expects the domestic construction sector to record modest growth.

Economist say that the worst could be over for the tiny island nation and its economy might pick up with exports rising.