Preliminary data shows Singapore's economy expanded slightly in the third quarter, narrowly avoiding recession after shrinking 2.5 percent in the previous three months.

The Ministry of Trade and Industry said Wednesday that gross domestic product expanded 0.1 percent in the July-September quarter from the previous quarter.

A recession is defined as two or more consecutive quarters of decline in GDP on a quarter to quarter basis.

Manufacturing was weak, partly reflecting the slowdown in China's economy, while services grew.

Separately, the Monetary Authority of Singapore said the pace of appreciation of the Singapore dollar will be "reduced slightly" for the second time this year, in a bid to revive economic growth.