Singapore’s non-oil domestic exports (NODX) contracted for the 11th consecutive month in August, falling by 20.1 percent, with both electronics and non-electronics seeing a decline.
The drop follows a revised 20.3 percent decrease in July and a 15.7 percent contraction in June. The August decline is worse than a Reuters poll forecast of a 15.8 percent drop.
According to data released by Enterprise Singapore (EnterpriseSG) on Monday (Sep 18), electronic product exports contracted by 21.1 percent in August, following a 26.1 percent fall in the previous month.
Integrated circuits (ICs), disk media products, and PCs contributed the most to the decline, falling by 28.5 percent, 30.6 percent, and 25.6 percent respectively.
Non-electronic exports declined by 19.9 percent in August, extending an 18.5 percent drop in July.
The biggest declines were in structures of ships and boats, pharmaceuticals, and specialised machinery, falling by 97.7 percent, 37.7 percent, and 25.5 percent respectively.
NODX to the top markets as a whole declined in August, although NODX to Indonesia rose, said EnterpriseSG.
The largest contributors to the decline in NODX were the US (-32.4 percent), the EU (-28.9 percent), and China (-16.4 percent). NODX to Indonesia grew by 33.2 percent.
On a year-on-year basis, total trade declined by 15.2 percent in August, following the 20.9 percent contraction in the previous month.
Both exports and imports fell, by 14.7 percent and 15.6 percent respectively.
Last month, Singapore narrowed its growth forecast for 2023. The Ministry of Trade and Industry (MTI) said the country’s gross domestic product for the year is expected to come in between 0.5 percent to 1.5 percent, narrowing from the previous 0.5 to 2.5 percent range.
In its quarterly assessment, MTI said it sees a “weak” external demand outlook for the rest of the year.
Earlier this month, private sector economists cut their forecast for Singapore’s economic growth this year to 1 percent, down from an earlier projection in June of 1.4 percent.
Prime Minister Lee Hsien Loong said on Sep 7 that Singapore will not see a recession this year despite a sluggish economy, although uncertainty remains for 2024.
-CNA
