Singapore  - Singapore must be prepared for a possible double-dip in the world economy, the city-state's finance minister said Wednesday, as the current global rebound was based on stimulus packages rather than sustainable growth.

"The immediate improvements we are seeing, in the US and around the world, owe themselves primarily to aggressive government stimulus packages and a correction in private-sector inventories," Tharman Shanmugaratnam said during the 10th anniversary of the Singapore stock exchange.

A firm or sustainable rebound that could underpin global economic growth in 2010 and beyond was yet to be seen, the minister said.

"We are past the worst of the crisis, and seeing an immediate bounce in economic activity, but have to be prepared for the possibility of a sluggish world economy or even a double-dip in 2010," he added.

Singapore's economy showed signs of a recovery recently, as gross domestic product from April to June soared 20.7 per cent compared with the previous quarter.

However, the government still expects the economy to shrink between 4 and 6 per cent for the year.(dpa)