SINGAPORE'S economy put up a better-than-expected showing in the first quarter due to manufacturing and financial services, sparking fresh hope that the worst is over.

The labour market, asset market and corporate sector have shown signs of resilience despite the recession, noted the Ministry of Trade and Industry (MTI).

However, while the economy is likely to have bottomed out and may not need a second stimulus package, there are still no strong indications of a decisive turnaround.

New data released by the MTI on Thursday showed that Gross Domestic Product contracted 10.1 per cent from the same period last year. This was better than the Government's earlier estimate of an 11.5 per cent plunge announced last month.

GDP fell 14.6 per cent in the first three months compared with the previous quarter, better than the 19.7 per cent plunge given in last month's advance estimate.

'We seem to have hit the bottom and things are not likely to get worse from this point on,' said MTI Second Permanent Secretary Ravi Menon.

MTI is maintaining its economic forecast range of -6 per cent to -9 per cent for this year, saying there have been 'no new major' systemic risks to the world economy apart from the Influenza A (H1N1) outbreak since its last revision.

The latest data presented 'a less pessimistic picture' compared to the advance estimates released last month, it said.

Citigroup economist Kit Wei Zheng said: 'The data should convince skeptics that the most pessimistic scenario has been kept at bay, and a more nuanced view is warranted.' Trade agency IE Singapore said exports declined by 26 per cent in the quarter from the previous year.

It kept its earlier projection that exports is expected to contract between 10 and 13 per cent this year. Singapore's total trade is tipped to shrink between 22 and 25 per cent this year.