SINGAPORE–Singapore’s economy contracted at a slower pace in the third quarter after pandemic restrictions were eased and growth improved in some major export markets.

The Southeast Asian city-state’s gross domestic product shrank 5.8% in the third quarter from a year earlier, according to revised Ministry of Trade and Industry data on Monday.

The advance estimate of third-quarter GDP had shown a 7.0% contraction. GDP shrank 13.3% in the second quarter.

Manufacturing grew 10.0% in the third quarter from a year earlier, after contracting 0.8% in the second quarter. Construction shrank 46.6%, compared with a 60.0% contraction in the second quarter.

Services output shrank 8.4% from a year earlier in the third quarter, compared with a 13.4% contraction in the second quarter, the data showed.

On quarter, GDP grew 9.2% in the third quarter on a seasonally adjusted basis. That compared with the advance estimate for a 7.9% expansion. GDP contracted 13.2% in the second quarter from the first quarter.

Singapore’s GDP is forecast to contract between 6.0% and 6.5% this year, compared with an earlier projection for a contraction between 5.0% and 7.0%, the MTI said.

Singapore’s economy is projected to return to growth in 2021 given an improved outlook for major economies and a further easing of global travel restrictions and domestic public health measures that are expected in the year ahead, the MTI said.

The economy is forecast to grow between 4.0% and 6.0% in 2021, the ministry said.

Write to Ronnie Harui at ronnie.harui@wsj.com