The building trade posted growth of 9.6 per cent in the first quarter, making it a standout performer, but it was still below the 10.3 per cent expansion in the fourth quarter of last year.

But the real star was financial services, which showed an unexpectedly buoyant 7.7 per cent growth over the previous three months.

Its rebound came after a dismal final quarter of 2008 when the global financial crisis hit home and sent the sector contracting 29.2 per cent.

The better-than-expected figures gave a marginal boost to the overall service sector, which makes up two-thirds of Singapore's economy. The sector shrank 5.2 per cent in the first quarter, better than the 5.9 per cent contraction that had been estimated last month.

Mr Ong Chong Tee, deputy managing director at the Monetary Authority of Singapore (MAS), said: 'There is some sense of recovery in confidence levels and in trading sentiment, and so that's leading to some recovery in financial activities - we've seen lending activities coming back in as well.'

Economists say, however, that the growth in the financial services sector may not necessarily mark a true rebound as it could be government-led.

OCBC economist Selena Ling said: 'The financial services results do support the 'green shoots' story in the sense that it managed to go back to the positive territory for quarter-on-quarter numbers.

Despite the encouraging figures in the financial services sector, it is unlikely that this year will see high growth. Singapore recorded growth of 5.5 per cent in the financial services sector last year - a high benchmark that will make this year's expansion lower in comparison.

The services sector in general was cushioned by financial services, but this could not offset the slowdown in trade and tourism-related sectors.

Read the full story in Friday's edition of The Straits Times.