Singapore faces years of slow growth, PM Lee says

SINGAPORE — Singapore's economy may shrink for a year and faces slow growth for several more as a global downturn undermines demand for the city-state's exports, Prime Minister Lee Hsien Loong said Friday.

"I think the recession may last a year," Lee said at a luncheon with foreign journalists in Singapore. "But the recovery from the recession is likely to be weaker than from previous recessions and we must be prepared for several years of slow growth."

Gross domestic product began contracting in the second quarter as demand dried up from the U.S. and Europe for Singaporean electronics and pharmaceuticals. Non-oil exports fell 15 percent in October from a year earlier and industrial production dropped 13 percent.

The government said last month the economy shrank 6.8 percent in the third quarter from the previous quarter after contracting 5.3 percent in the second quarter.

The government expects 2.5 percent growth this year and economic activity next year to range from a 1 percent contraction and 2 percent growth.

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