Is Singapore headed towards a dreaded recession this year?

The financial sector remains vulnerable to risks.

Singapore is unlikely to dive into a recession in the remaining months of 2016 despite dangers entailed in a waning financial sector and a growing concern on Zika spread, analysts said.

According to UOB, the city-state is still in a good stance to dodge threats of a depressed economy. It also believes it is too early to predict the impact from the outbreak of the Zika virus but it is unlikely to have a huge impact on the Singapore economy.

The head of the Monetary Authority of Singapore, Ravi Menon, revealed on Tuesday that the government is wary of the financial sector’s vulnerability to risks including pressures from the oil and gas industry, but he said stress tests show lenders would be able to absorb losses under worst-case scenarios.

A report by Reuters also quoted the central bank chief saying that early indications of the Zika outbreak could have a small impact to Singapore but that would be too quick to tell.

The outbreak coincides with a dip in overall exports and growth in the trade-dependent economy. Singapore’s main overseas market, China, is also slowing down, the report said.