AI demand lifts Singapore key exports 24.2% in July, but misses forecasts

[SINGAPORE] The Republic’s key exports expanded 24.2 per cent in July, extending the 20.8 per cent rise in June.

This came on the back of robust artificial intelligence related demand, Enterprise Singapore data showed on Monday (Aug 17).

However, July’s expansion fell short of the 26.8 per cent forecast by private-sector economists in a Bloomberg poll.  

Electronic exports surged in July, while non-electronics dipped marginally. 

Electronics exports expanded 112 per cent in July, from 105 per cent the month before. Disk media products (339.1 per cent), integrated circuits (84.5 per cent) and PCs (120.8 per cent) contributed the most to the expansion.

Meanwhile, non-electronics shipments decreased by 2.3 per cent, accelerating slightly from June’s 2.8 per cent decline. July’s decline was driven by pharmaceuticals (-56.6 per cent), petrochemicals (-22.5 per cent), and food preparations (-17.9 per cent).

Overall, total merchandise trade grew 38.6 per cent year on year in July, after the 49.3 per cent expansion in June. Both exports and imports rose.

In July, key exports to all but one of Singapore’s top 10 markets rose.

Non-oil domestic exports (NODX) to the European Union 27 fell 35.5 per cent, reversing the 20.8 per cent growth the month before.

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In contrast, NODX to all other markets posted growth in July. This was led by the US (62.8 per cent), followed by South Korea (53.3 per cent), and China (37.6 per cent).

Hong Kong, Taiwan and Malaysia posted growth of 36.4 per cent, 32.4 per cent and 23.4 per cent, respectively.

This was followed by Thailand (18 per cent), India (13 per cent) and Indonesia (12.4 per cent).