Singapore  - The Singapore economy grew by 1.1 per cent in 2008, compared with 7.8 per cent a year earlier, the Ministry of Trade said Tuesday.

However, the city-state's gross domestic product (GDP) fell by 4.2 per cent on a year-on-year basis in the fourth quarter after posting flat growth in the third quarter.

On an annualized, seasonally adjusted basis, GDP slumped by 16.4 per cent from October to December last year, following a 2.1-per-cent contraction in the previous quarter, the ministry said.

Singapore has been hit hard by the global recession, which has caused its exports to fall as world demand shrinks. The Asian financial centre also has been deeply impacted by the global financial crisis.

As a result, the ministry earlier estimated that Singapore's GDP would shrink 2 to 5 per cent this year.

The figures released Thursday were little changed from earlier forecasts in January when the ministry estimated Singapore's GDP growth reaching 1.2 per cent for all of 2008. (dpa)