Singapore: Non-oil domestic exports drop in March
Non-oil domestic exports (NODX) dived 20.7% annually in March (February: -0.2% year-on-year). The figure marked the worst decline since August 2023. In seasonally-adjusted month-on-month terms, NODX exports declined 8.4% in March, following February’s 4.9% decrease.
Annual NODX weakened notably due to a plunge in pharmaceutical shipments, which dropped over 70% year on year in March, and a contraction in electronics as elevated global interest rates continued to weigh on demand. Looking at key export markets, NODX to the EU, Japan and the U.S. declined, outweighing increasing shipments to China, Hong Kong and Taiwan.
EIU analysts commented on the external sector’s outlook:
“The current-account surplus will remain sizeable in 2024-28, underpinned by a strong electronics export sector, the economy’s openness to trade and its comparative advantage in finance and professional services. The conclusion of DEAs will help Singapore to attract more investment into e-commerce.”