Singapore: Exports contract strongly in February

Non-oil domestic exports (NODX) contracted 5.9% on an annual basis in February, starkly contrasting January’s revised 12.9% year-on-year expansion (previously reported: +13.0% year-on-year). The result significantly undershot market expectations of modest growth.

February’s downturn came chiefly on the back of lower demand from China, Taiwan and the EU. Exports to the U.S., Japan and South Korea, however, continued to expand in the month. Sectoral data revealed that both exports of electronic and of non-electronic products declined. Electronic products exports contracted 12.3% in February, a steeper decline compared to the prior month’s 3.9% drop—primarily resulting from lower foreign demand for integrated circuits, parts of personal computers and diodes as well as transistors. Exports of non-electronic products, meanwhile, swung from a strong 20.7% increase in January to a 3.4% decrease in February.

In month-on-month seasonally-adjusted terms, exports fell 2.6% in February, a stronger contraction than the previous month’s revised 0.4% drop (previously reported: -0.3% month-on-month seasonally-adjusted).

Singapore Exports Forecast

FocusEconomics Consensus Forecast panelists see overall nominal exports expanding 2.8% in 2018, which would bring exports to a total of USD 406 billion. For 2019, the panel sees exports growing 6.8% and reaching a total of USD 434 billion.