Gross domestic product grew an annualized, seasonally adjusted 14.9 percent in the third quarter, following a jump of 22 percent the previous quarter, the Trade and Industry Ministry said Monday, Oct 12.

The economy also expanded -- up 0.8 percent -- from a year earlier for the first time since the third quarter of 2008, the ministry said.

"A clear but modest recovery is under way globally, at least for the next three or four quarters," the ministry said. "However, economic activity will probably remain below pre-crisis levels because of the drag on demand in the developed economies."

The government boosted its 2009 GDP forecast to a contraction of between 2 percent and 2.5 percent from a previous expectation of a fall between 4 percent and 6 percent.

Singapore relies on trade, finance and tourism to sustain one of Asia's highest living standards. Manufacturing soared an annualized, seasonally adjusted 35 percent in the third quarter while services grew 9.5 percent.

Economists generally define a recession as two consecutive quarters of economic contraction while an economy emerges from recession with two quarters of growth.

The central bank said Monday it left unchanged its exchange rate policy, favoring neither an appreciation nor depreciation of the Singapore dollar. The bank, known as the Monetary Authority of Singapore, said it expected inflation near 0 percent this year and between 1 percent and 2 percent next year.

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