Singapore - The worst might be over for Singapore's economy, but a decisive rebound from recession is not in sight for 2009, the city-state's central bank said Wednesday. "With the current world economic downturn likely to be a prolonged one, Singapore's climb out of recession will be slow and gradual," the Monetary Authority said in a macroeconomic review.

The most intense phase of this downturn for Singapore might have already occurred, it said.

"Nonetheless, the domestic economy is not expected to stage a decisive rebound this year," the central bank said.

"Indeed, the path of recovery is uncertain and hinges on external developments, including the recent outbreak of swine influenza in Mexico, which has added a new dimension to the risk outlook," it added.

The global recession has dampened demand for Singapore's exports, causing the city-state to be hit by its worst recession since its independence from Malaysia in 1965.

The government expected the economy to shrink 6 to 9 per cent this year.

"However, the extreme openness of the Singapore economy should enable it to pick up more strongly than other countries when the global recovery eventually gets under way," the central bank said.(dpa)