The Singapore economy grew by 4.9 per cent last year, a slowdown from the nearly 15 per cent growth recorded the year before.
The finance and insurance sector posted 9.1 per cent growth over the period while the manufacturing sector clocked in 7.6 per cent growth.
In a statement, the Ministry of Trade and Industry also said that Singapore's gross domestic product rose by 3.6 per cent in the fourth quarter over the level in the same period the year before.
However, on a quarter-on-quarter seasonally-adjusted basis, the economy shrank by 2.5 per cent, reversing the 2 per cent growth the previous quarter.
The trade ministry said it was keeping its growth forecast this year at between 1 per cent and 3 per cent.
"The global economic outlook remains subdued. Although the US economy has shown signs of pick-up, particularly in employment and consumer spending, the strength of the recovery will be restrained by public spending cuts as well as continued weakness in the housing market," the MTI said.
"In the Eurozone, the economy is expected to enter into a recession as fiscal consolidation and bank deleveraging dampen private demand. The major Asian economies are also likely to see slower growth as external headwinds erode export performance," it noted.
"Against this macroeconomic backdrop, Singapore's external-oriented sectors will face a challenging environment ahead," it added.