Singapore non-oil domestic exports growth slows sharply to 2.7% in Q2

NON-OIL domestic exports (NODX) continued to grow year on year in the second quarter but the pace slowed sharply from 15.3 per cent in the first quarter to 2.7 per cent.

Total trade growth similarly eased from 16.4 per cent to 9.5 per cent according to the latest trade data released by trade promotion agency International Enterprise Singapore (IE Singapore).

But both NODX and overall trade performance are still better than expected, IE Singapore said. And together with the global economic and trade outlook remaining positive, the agency has raised its forecast for NODX to 5-6 per cent and trade to 6-7 per cent. Previous forecasts were 4-6 and 5-7 per cent respectively.( See amendment note)

IE Singapore said NODX growth in the second quarter was driven mainly by electronic shipments; non-oil electronic exports slipped from a year ago. Total trade growth was attributed to growth in both oil and non-oil trade.

Total services for second quarter jumped 4.9 per cent to hit S$110.4 billion, after a 4.1 per cent rise in the first quarter.

NODX shipments to all top 10 markets increased in the second quarter, except for the European Union, Hong Kong and the US. China (33.2 per cent), South Korea (62.7 per cent) and Taiwan (22.5 per cent) were the biggest contributors to the NODX growth in the second quarter.

Non-oil re-exports rise 8 per cent in the second quarter, extending the 6.8 per cent increase in the first quarter.

Amendment note: An earlier version had the latest forecast for NODX to be 6-7 per cent and trade 5-6 per cent; the earlier forecasts were 5-7 and 4-6 per cent respectively.