External headwinds weigh on Singapore’s export growth despite forecast upgrade: economists

DOWNSIDE risks are likely to continue weighing on Singapore’s export performance in the months ahead, even though the authorities on Wednesday (May 25) significantly upgraded their full-year trade forecast, said economists.

Total merchandise trade is now expected to grow 8-10 per cent, while the outlook for non-oil domestic exports (NODX) is 3-5 per cent, according to Enterprise Singapore’s quarterly trade review.

As recently as February, the official forecast for both indicators was maintained at 0-2 per cent, “considering that the pace of growth is likely to moderate from the high base in 2021, in line with the global economic and trade outlook”, said EnterpriseSG.