Financial Times, 22 Nov 2008, John Burton
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.
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