Singapore says its economy shrank in the second quarter as weakening global economic growth hurt demand for the city-state's exports.

The Trade and Industry Ministry said today that gross domestic product contracted at a seasonally adjusted, annualised rate of 0.7 per cent in the April to June period from the previous quarter, when it expanded 9.5 per cent.

The ministry said the economy expanded 2 per cent in the second quarter from the same period a year earlier, up from 1.5 per cent growth in the first quarter.