MINISTER Mentor Lee Kuan Yew on Tuesday expressed doubts about the 'green shoots' pointing to a possible recovery in the United States economy by the year's end - one that could revive Asian economies, including Singapore's.

But it was good that the Americans were 'always optimistic', he said.

He was speaking to reporters during his first-ever ride on the Singapore Flyer observatory wheel.

He was asked about the global economic downturn's impact on the tourism industry, which has seen a dip in arrivals.

The Singapore Tourism Board estimates there will be between nine and 9.5 million visitors this year - an annual drop of between 6 per cent and 11 per cent.

This is a result of people worldwide tightening their belts by going to nearer holiday destinations, MM Lee said.

'Everyone does that. Not that they've become poorer overnight, but they have become cautious about spending overnight,' he explained.

'But if you believe what Bernanke and Geithner say, there are 'green shoots'; American banks are beginning to show a little bit of profit. But that may be because they've changed their method of reckoning, per quarter instead of December which counts from January.

'So I have my doubts. But anyway, it's good to be optimistic. The Americans are always optimistic, which is good.'

MM Lee was referring to comments by US Federal Reserve chairman Ben Bernanke and Treasury Secretary Timothy Geithner about the possibility of an earlier US economic recovery.

Read the full story in The Straits Times today.