( CNN ) -- Singapore 's economy shrank by 4.2 percent in the fourth quarter of 2008 , the Ministry of Trade and Industry said Thursday , as it forecast the economy would contract between 2 and 5 percent this year . Boats ply under a bridge near the financial district of Singapore . Compared to a robust growth of 7.8 percent a year earlier , the economy grew by 1.1 percent for the whole of 2008 , the ministry added . It called Gross Domestic Product growth prospects for 2009 `` weak ... on account of the pessimistic global economic outlook . '' All major sectors , except for construction , business services and information and communications , saw contractions , the ministry said . The ministry cited a decline in private sector investments and private consumption expenditure for dragging down total domestic demand . Declines in global demand for electronics products , pharmaceuticals and chemicals were also likely to weigh on the manufacturing sector .
Singapore 's economy shrinks by 4.2 percent in the fourth quarter of 2008 . Malaysia ' economy will contract between 3 and 5 percent this year . Economy grew by percent in 2007 , but only by percent for the whole of 2008 . Construction , business services , information , tourism avoid contractions .