Singapore leader: economic growth to stay on track

SINGAPORE – Singapore should avoid another recession next year as demand from abroad stabilizes, Prime Minister Lee Hsien Loong said Tuesday.

"We don't expect another dip in the immediate future," Lee said at a news conference. "We expect the economy to continue to stabilize."

Singapore _ which relies on trade, finance and tourism _ has seen its economy rebound since April from a deep contraction triggered by the global financial crisis and recession. The economy grew a seasonally adjusted 15 percent in the third quarter following a 22 percent jump in the second quarter.

The government, which expects the economy to shrink up to 2.5 percent this year, hasn't announced its gross domestic product growth forecast for next year.

"In January, things looked very bleak in Singapore," Lee said. "I don't see a rapid expansion, rather at best a steady, gradual recovery."

Lee said Asian consumers must boost spending and investment so economic growth can continue once governments ease stimulus spending.

"As governments withdraw stimulus, you have to have self-sustaining growth, and that's going to take some time," Lee said. "Americans have to save more, Asians have to spend more."