Singapore's economy has narrowly missed a double dip recession, after reporting 0.1% annualised growth in the fourth quarter.

There is expected to be little improvement in the coming six months for Asia's most export-dependent economy.

The central bank, the Monetary Authority of Singapore said the economic outlook "has become less favourable since mid-2002".

"We expect the Singapore economy to remain sluggish in the first half of 2003, before staging a more balanced and firmly grounded recovery in the second half of this year," it said.

Exports account for almost two-thirds of Singapore's economy.

Weak demand for the city-state's key electronics exports and manufactured goods led to cut jobs in 2002, sending unemployment to a 15-year high.

Teetering on the edge

Preliminary data showed 2.6% growth in the quarter ending December, slowing from 3.9% in the previous quarter, Ministry of Finance figures said.

But in the quarter to July there was a contraction of 9.9%, causing an annualised rate of just 0.1%.

Singapore has been struggling since it emerged from last year's recession.

In the December quarter, "almost all sectors registered better performance as the economic conditions have held up," the Ministry of Trade and Industry said.

"The manufacturing sector and services-producing industries expanded by 7.5% and 1.5% respectively while the construction sector contracted by 10%," the trade ministry said.