Non-oil domestic exports (Nodx) grew 2.7 per cent in the second quarter, coming off the 15.3 per cent expansion in the previous quarter, with increased shipments of electronic products offsetting the decrease in non-electronics.
Notwithstanding the slowdown in export growth, IE Singapore narrowed upwards its growth projections for full-year exports to 5 per cent to 6 per cent, and for total merchandise trade to 6 per cent to 7 per cent.
This was given the better-than- expected performance of total trade and Nodx to date this year and the view that "the global economic and trade outlook remains positive since the last update, notwithstanding uncertainties surrounding near-term economic and policy developments", said IE Singapore.
Given the revision, the next key data point will be July's Nodx, which will be released on Thursday.
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Year-on-year, exports of electronic products - which comprised 28.8 per cent of Nodx in the first half of 2017 - increased by 13.3 per cent in the second quarter, following the 9.5 per cent growth in the first quarter, figures released yesterday by IE Singapore show.
Integrated circuits, parts of PCs and PCs expanded by 25.1 per cent, 18.4 per cent and 11.4 per cent respectively, and they contributed the most to the increase in electronic Nodx.
Exports of non-electronic products - which comprised a hefty 71.2 per cent of Nodx in the first half-year - declined by 1.1 per cent, off the high base a year ago, after the 17.8 per cent expansion in the first quarter of this year.
Exports to Singapore's top 10 markets rose in the second quarter, except for the European Union, Hong Kong and the United States.
The biggest contributors to the increase were China (+33.2 per cent), South Korea (+62.7 per cent) and Taiwan (+22.5 per cent).