SINGAPORE: Singapore is worried the country could be facing a recession after preliminary economic forecasts for the second quarter of this year revealed the Asian powerhouse was in a slowdown. The Trade and Industry Ministry on Friday said the country's GDP slowed to a rate of 1.1 percent growth between April and June, down from the 9.4 percent it expanded the previous quarter. It was the result, the ministry argued, on the global economic worries facing Europe and a decline in exports. Investors are fearful that if the economy does not pick up the rest of the year, the city-state could be facing a recession. “Manufacturing, led by electronics and pharmaceuticals, dropped 6 percent in the second quarter, reversing from 21 percent growth in the first quarter, while services grew just 0.4 percent and construction 0.3 percent,” the ministry said. “The manufacturing sector, the key driver in the first quarter, is now the main drag," said Irvin Seah, an economist with DBS Bank in Singapore, in comments published by Malaya.com. “Weak external demand on account of the economic turmoil in the eurozone and the fading growth momentum in the US continues to weigh on the growth pace in this sector," Seah said. Singapore, which relies heavily on trade, finance and tourism to push one of the top living standards in the world, did say it expects the economy to grow as little as one percent this year, down from 4.9 percent growth last year, which means recession is staring the city in the face.