Singapore's non-oil domestic exports (NODX) increased by 20.7% year on year in June, according to data from Enterprise Singapore released on July 17. This growth moderated from a 38.4% rise in May and fell short of economists' median forecast of 28.7% growth, as reported by Bloomberg.
Key Details
Electronics shipments surged by 105.1% in June, up from 94.8% in May, driven by strong demand related to artificial intelligence. Key contributors included disk media products, which rose by 170.9%, integrated circuits at 115.4%, and personal computers at 95.8%. In contrast, non-electronics shipments declined by 2.9%, reversing a previous 17.7% increase, primarily due to significant drops in non-monetary gold (-49%), food preparations (-38.6%), and petrochemicals (-27.9%).
Background
Total merchandise trade expanded by 49.3% year on year in June, building on May's 39.6% growth. Exports and imports both increased, with key exports to Singapore's top ten markets rising across the board. Taiwan led with a 123.3% increase, followed by South Korea at 62.9% and Thailand at 41.5%. The U.S., Malaysia, and Hong Kong also recorded growth rates of 36.7%, 35.3%, and 25.9%, respectively, while the EU 27 saw a 20.8% increase.
The missed export forecasts could lead to a reassessment of growth expectations for Singapore's economy, particularly in the electronics sector, which is crucial for trade balances. Investors may closely monitor the impact on the Singapore dollar and related equities as these figures could influence monetary policy decisions.
Watch for the release of July's NODX data, which will provide further insights into the trend of Singapore's export performance.