Singapore  - The Singapore government has lowered the city state's economic growth projection to between minus 2 per cent and plus 1 per cent for 2009, lower than it had forecast in November 2008.

The global economic crisis has worsened since November, with sharp declines in global demand, trade and investments, said the Trade and Industry Ministry in a statement Friday.

In November, the ministry had anticipated growth ranging from minus 1 per cent to plus 2 per cent.

The contraction of regional economies would affect Singapore's economic sectors that rely on the movement of goods and services in the region, such as the wholesale and retail sector and the transport and storage sector, the ministry said.

Manufacturing would be weighed down by falling demand in the developed economies, while financial services would see a sharp slowdown reflecting weak financial markets and credit growth, the ministry said.

The slowdown in these sectors would spread to the domestically-oriented segments of the economy, such as property, retail, and business services, the ministry cautioned. (dpa)