According to the estimates by the Ministry of Trade and Industry, the Singapore's economy is expected to grow by around 1.5 per cent this year.

The ministry also 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.

Analysts say that there are positive signs from some Asian economies and this indicates that the economy might be starting to recover. Singapore's gross domestic product (GDP) shrank at 5.9 percent in the third quarter, which is much faster than expected. The government was expecting a contraction of around 1.5 percent.

However, economist say that the worst could be over for the tiny island nation and its economy might pick up with exports rising. Non-oil domestic exports rose 7.9 percent in October from a year earlier, which is higher than the forecast of 3.1 percent in a Reuters poll.