By Chen Lin

SINGAPORE Singapore's economy narrowly escaped a technical recession after posting modest growth in the April to June period, preliminary government data showed on Friday, as global demand weakened and China's slowdown dragged on trade.

The economy grew a seasonally adjusted 0.3% quarter-on-quarter, following a 0.4% contraction in the first quarter. Four economists with quarterly estimates had forecast growth of 0.3% in a Reuters poll.

On an annual basis, the economy expanded 0.7% in the second quarter, Ministry of Trade and Industry advanced estimates showed. That compared with 0.4% growth in the prior quarter and a 0.6% expansion forecast in a Reuters poll.

The government had projected GDP growth of 0.5% to 2.5% for this year.

The ministry had said in May it does not expect a technical recession - defined as two consecutive quarters of contraction - this year but acknowledged that the external demand outlook for the rest of the year had weakened.

Singapore's inflation had remained elevated in the first half of this year, but authorities have said core prices should moderate further in the second half.

The Monetary Authority of Singapore left its policy settings unchanged in April, after tightening five times in a row since October 2021, reflecting concerns over the city-state's growth outlook.

(Reporting by Chen Lin; Editing by Martin Petty)