"On a quarter-on-quarter seasonally-adjusted annualised basis, the economy contracted by 1.5 per cent, compared to the 0.2 per cent expansion in the second quarter", the Ministry of Trade and Industry (MTI) said while releasing the advance GDP figures.
MTI, however, said Singapore economy remains on track to grow by 1.5 to 2.5 percent in 2012.
It said economic growth in the second quarter was better than expected, resulting in an upward revision of quarter-on- quarter annualised growth from the preliminary estimates of -0.7 per cent to 0.2 per cent.
The Ministry also cautioned that growth could be weighed down by the subdued global economic conditions for the rest of the year.
Externally-oriented sectors such as manufacturing and wholesale trade would be affected by the slowdown in advanced economies though the transport engineering cluster and construction sector were expected to provide support, it said.