www.ft.com/cms/s/0/c0ff6644-b839-11dd-ac6d-0000779fd18c.html?nclick_check=1
Singapore's government faces its biggest test since taking
office in 2004 after forecasting that the economy will shrink 1-2
per cent next year.
The prediction followed weaker than expected third-quarter gross
domestic product figures.
Official data said the city-state's GDP contracted 0.6 per cent
year-on-year in the three months to September compared with an
initial estimate of a 0.5% decline.
A recession next year would be the fourth that Singapore has
suffered since independence in 1965 but some economists believe it
could be the country's worst. The sudden downturn may prompt the
government to call an early election before scheduled polls in 2011
in case economic pain leads to a backlash against the People's
Action party that has ruled Singapore for 50 years.
