By Gabriel Chen

UBS expects the Singapore economy to shrink by 0.5 per cent next year but to bounce back with a 4 per cent growth rate in 2010.

It also expects the United States to see its worst recession in 25 years.

'We expect only a moderate recovery in economic activity in the US and Europe towards the end of next year, with risks remain skewed to the downside,' said Mr Thomas Kaegi, senior economist at UBS Wealth Management Research on Friday.

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