Government cuts forecasts for Singapore 2015 non-oil domestic exports and merchandise trade

An aerial view of PSA International and its containers at Tanjong Pagar Terminal.
An aerial view of PSA International and its containers at Tanjong Pagar Terminal.ST PHOTO: KUA CHEE SIONG

SINGAPORE - The Government again cut its forecast for the growth in Singapore's non-oil domestic exports (NODX) this year to 0.5-1.0 per cent from 1-2 per cent after the latest gloomy trade performance.

As oil prices continue to remain weak, total merchandise trade is also expected to fall between 10.0 and 10.5 per cent for the full year, down from earlier forecasts of 9.5-10.5 per cent declines, International Enterprise (IE) Singapore said on Wednesday (Nov 25).

For 2016, against the backdrop of an expected continued moderation in China's economic growth even as advanced economies improve modestly, NODX is forecast to grow at a broadly similar pace of 0.0 to 2.0 per cent, the trade promotion agency said.

On the other hand, as oil prices are expected to remain low but stable in 2016, the nominal value of total oil trade could see a recovery in 2016. Thus, overall, total merchandise trade is forecast to grow by 0.0 to 2.0 per cent in 2016, said IE Singapore.

Its latest downward revisions came after NODX declined 3 per cent and total merchandise trade fell 8.5 per cent in the third quarter.