Singapore is keeping up economically and the city-state expects to see economic growth this year, Prime Minister Lee Hsien Loong said on Sunday.

Lee, in his annual policy address called the National Day Rally, warned Singaporeans that global warming will affect food production and global prices.

He said he hopes the country will avoid a recession but said inflation, although it has tapered, will remain "higher than what we are used to."

(Cover: City view of Singapore. /CFP)