BY SE YOUNG LEE AND P.R. VENKAT

SINGAPORE -- Singapore's economy continued its fast-paced rebound in the third quarter, prompting the government to raise its outlook for the full year. But the central bank kept monetary policy steady, striking a cautious tone about the risks to the recovery.

The numbers may be an indicator of how Asian economies are faring, as Singapore's economic performance is considered a gauge for export-dependent nations like South Korea and Taiwan. Singapore's nonoil domestic exports account for nearly 60% of the economy.

The island state's gross domestic product expanded 14.9% in the third quarter on a seasonally adjusted and annualized basis, in ...