Singapore Trade Ministry raised its economic forecasts as it expected the economy to shrink between 2% and 2.5% this year compared with previous forecasts of a contraction between 4% and 6%. This came after the economy showed signs of recovery in the last few months.

Singapore economy shrank an annual 3.2% in the second quarter coming after a contraction by 9.5% in the first quarter. The nation's industrial output rebounded recently supporting the economy to emerge from the worst recession since World War II, while the government's stimulus plan of $950 billion helped to spur demand and heal the deteriorated business sector.