Economic growth has stumbled in Singapore, with analysts forecasting a rocky path ahead that will include a technical recession.
A recession is defined as two consecutive quarters of on-year economic contraction, while a technical recession would be two quarters of quarterly contraction.
For the third quarter, Singapore's gross domestic product (GDP) grew by 1.1 percent on-year, down from 2.0 percent in the previous quarter, according to final data released by the Ministry of Trade and Industry (MTI) on Thursday.
But on a quarterly basis, the economy contracted by 2.0 percent, weakening from a 0.1 percent on-quarter expansion in the second quarter.
The Singapore dollar fell to its lowest levels since January after the figures, with the greenback fetching as much as S$1.4361 Singapore dollars, compared with S$1.4310 prior to the release.
While both the on-year and on-quarter final figures were an improvement on the advance estimates released earlier this month, that didn't reassure economists much.
"Today's print does not detract from the fact that sequential growth still remains entrenched in negative territory and the economy still runs the risk of a technical recession in the fourth quarter," Weiwen Ng, an economist for ANZ, said in a note on Thursday.
Even the government doesn't hold out much hope for a steep recovery, forecasting the island-nation's economy would grow 1.0-1.5 percent in 2016, narrowing a previous forecast of 1.0-2.0 percent. It forecast "modest" growth of 1.0-3.0 percent in 2017. But it wasn't fully as pessimistic as analysts, with MTI Permanent Secretary Loh Khum Yean saying on Thursday that the "central view" was that the economy would avoid a technical recession in the fourth quarter, according to a Reuters report.