18-9-2023 (SINGAPORE) Non-oil domestic exports (NODX) in Singapore have contracted for the 11th consecutive month, with a decline of 20.1 percent in August. Both electronics and non-electronics sectors experienced decreases, marking a continuation of the country’s economic challenges.
This drop follows a revised 20.3 percent decrease in July and a 15.7 percent contraction in June. According to data released by Enterprise Singapore (EnterpriseSG), electronic product exports contracted by 21.1 percent in August, following a 26.1 percent fall in the previous month. The decline was particularly significant in integrated circuits (ICs), disk media products, and PCs, which fell by 28.5 percent, 30.6 percent, and 25.6 percent, respectively.
Non-electronic exports also declined by 19.9 percent in August, extending an 18.5 percent drop in July. The most substantial declines were observed in the structures of ships and boats, pharmaceuticals, and specialized machinery, with declines of 97.7 percent, 37.7 percent, and 25.5 percent, respectively.
NODX to the top markets decreased in August, except for NODX to Indonesia, which saw an increase. The largest contributors to the NODX decline were the US (-32.4 percent), the EU (-28.9 percent), and China (-16.4 percent). In contrast, NODX to Indonesia grew by 33.2 percent.
Year-on-year data showed that total trade declined by 15.2 percent in August, following a 20.9 percent contraction in the previous month. Both exports and imports fell by 14.7 percent and 15.6 percent, respectively.
Singapore had recently revised its growth forecast for 2023, narrowing it down to a range of 0.5 percent to 1.5 percent, compared to the previous estimate of 0.5 percent to 2.5 percent. The Ministry of Trade and Industry (MTI) cited a “weak” external demand outlook for the rest of the year in its quarterly assessment.
Private sector economists also reduced their growth forecast for Singapore’s economy in 2023 to 1 percent, down from the earlier projection of 1.4 percent in June. Prime Minister Lee Hsien Loong stated that while a recession is not expected in Singapore this year, uncertainties remain for 2024.
