Singapore growth decelerates sharply in Q2

HONG KONG (MarketWatch) -- Singapore said Monday its economy expanded at its slowest quarterly pace in five years and said it now expects exports to contract from year-earlier levels.

Gross domestic product expanded 2.1% in the second quarter from a year earlier, down from a 6.9% expansion in the first quarter, according to a statement by the Ministry of Trade and Industry.

The ministry lowered its export outlook, saying it now expects a contraction of 2% to 4% this year, compared with its previous forecast for an expansion of between 2% to 4%.

Singapore last week reduced its economic growth forecast for the year, saying it expects growth in the range of 4% to 5%, down from its earlier target of 4% to 6% growth.

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