Singapore March exports seen contracting on weak global demand: poll

[SINGAPORE] Singapore's exports in March are forecast to have shrank in another sign of sluggish global demand, backing Thursday's unexpected policy easing by the central bank as it tries to reanimate feeble growth.

Non-oil domestic exports in the trade-dependent economy were expected to fall 13.2 per cent in March from a year earlier, according to the median forecast in a Reuters survey of 12 economists.

In February, overseas sales posted a surprising increase from a year earlier, helped by a surge in shipments from the statistically volatile pharmaceuticals sector.

On Thursday, the Monetary Authority of Singapore surprised markets by easing its exchange-rate based policy after growth stalled in the first quarter, darkening the outlook for the economy.

On a month-on-month, seasonally adjusted basis, non-oil domestic exports in March were seen up 2.3 per cent, the poll showed.

Activity in the city-state's factories in March shrank for a ninth straight month in March, although the contraction was less than in February as new orders improved, a survey showed.

REUTERS