Container ship and bulk carrier behind the Marina Bay Sands hotel and casino off the coast of Singapore on Monday, February 19, 2024.
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Singapore’s domestic non-oil exports in March decreased by 20.7% compared to the same month last year, a sharp decline from the revised figure of 0.2% in February.
The 20.7% decline was significantly lower than expected, and economists polled by Reuters had expected a 7% decline. This is the largest decline in domestic non-oil exports recorded by Singapore since January 2023.
Domestic non-oil exports fell 8.4% from the previous month, also exceeding the 4.5% decline predicted by Reuters.
Government business development agency Enterprise Singapore said the slump was due to a decline in non-electronics exports, including pharmaceutical exports. Exports of electronic equipment decreased by 9.4%, and exports of non-electronic equipment decreased by 23.2%.
Singapore’s domestic non-oil exports to key markets declined in March, particularly to the United States, European Union and Japan. However, exports to China, Hong Kong, and Taiwan increased.
Enterprise Singapore said non-oil domestic exports stood at S$13 billion on a seasonally adjusted basis in March, lower than February’s S$14.2 billion and the 2023 average of S$14.5 billion.
Singapore’s total trade volume decreased by 1.8% year-on-year in March, following a 3.5% increase in the previous month. Exports decreased by 3.4%, and imports also decreased by 0.1%.
Following the announcement, Shena Yue, an economist at Oxford Economics, said in a note that she “remains cautious” about the outlook for exports, while higher value-added domestic exports are struggling. He noted that re-exports have been driving growth in recent months. .
Yue also stressed that global economic growth will continue to be constrained as monetary policy is expected to remain tight in key export destinations such as the US and the EU, weighing on import demand.
“Therefore, manufactured exports are unlikely to significantly boost GDP growth this year.” [for Singapore],” she said.