The Singapore economy grew a less-than-expected 1.5 per cent in the last three months of 2014, according to data released by the Ministry of Trade and Industry on Friday.

The lacklustre fourth quarter growth figure was dragged down mainly by the manufacturing and construction sectors.

The manufacturing sector contracted 2 per cent over same period in 2013, while the construction industry expanded a mere 0.8 per cent.

Services, which make up 70 per cent of the Singapore economy, grew 2.6 per cent.

The latest data comes after Prime Minister Lee Hsien Loong revealed in his New Year's message that the economy grew 2.8 per cent in 2014. Initial official forecasts tipped growth of "around 3 per cent".

Economists polled by Reuters had forecast fourth quarter GDP of 2.0 per cent.