Singapore's GDP growth to bounce back to 3% this year: Moody's

But it'll be a slow process.

According to the report, Moody's expects Singapore's real GDP growth to recover only slowly, to 3% in 2013 and 3.5% in 2014, from 1.3% in 2012.

Moody's report says that last year's GDP growth, which was the slowest since the economy contracted by 1% in 2009 during the global financial crisis, was dragged down by weak demand in the European Union, Singapore's largest export destination.

"On inflation, the report says that rise in prices in 2013 should moderate slightly and average close to 4% from an average of 4.6% in 2012. Moody's further expects nominal wage increases to outpace inflation in 2013, which should lend support to private consumption," it said.