Singapore non-oil domestic exports forecast to grow by just 1-2% for full year after growth slows to 2.1% in Q2

Singapore's non-oil domestic exports grew 2.1 per cent in the second quarter of this year, much lower than the 4.8 per cent growth in the first quarter.
Singapore's non-oil domestic exports grew 2.1 per cent in the second quarter of this year, much lower than the 4.8 per cent growth in the first quarter. PHOTO: ST FILE

SINGAPORE - Singapore's non-oil domestic exports (NODX) grew 2.1 per cent year-on-year in the second quarter of 2015, much lower than the 4.8 per cent growth in the first quarter, International Enterprise (IE) Singapore said on Tuesday.

The trade promotion agency has also narrowed its total trade and NODX growth forecasts for 2015 to between -10.5 and -9.5 per cent, and 1 and 2 per cent, respectively.

In doing so, IE Singapore said that global economic growth has been weaker than expected in the first half of the year.

While the advanced economies are expected to see a gradual rebound for the rest of the year, the outlook for the regional economies has generally softened, it said.

Downward pressures in oil prices is also likely to continue to depress oil trade further in nominal terms, it added.

Total trade declined 10.6 per cent in the second quarter, extending the 10.5 per cent drop in the previous quarter.

For the second quarter, while NODX to Indonesia, Taiwan and Malaysia declined year-on-year, NODX to all the rest of the top markets increased. The biggest contributors to the expansion were the US, South Korea and Thailand.

Specifically, NODX to the US grew by 11.2 per cent, following the previous quarter's increase of 10.2 per cent. NODX to South Korea rose by 22.8 per cent, following the previous quarter's growth of 22.7 per cent, while NODX to Thailand increased by 9.2 per cent, after growing 9.6 per cent in the previous quarter.

Domestic exports of electronic products expanded by 0.1 per cent in the second quarter, after growing 1.2 per cent in the previous quarter. The was largely due to higher domestic exports of PCs (52.8 per cent), integrated circuits (6.8 per cent) and telecommunications equipment (64.9 per cent).

Growth in non-electronic exports slowed to 2.9 per cent from 6.2 per cent in the previous quarter. The increase was attributed to higher domestic exports of non-electric engines and motors (323.4 per cent), structures of ships and boats (1,102.6 per cent) and specialised machinery (11.6 per cent).

Non-oil re-exports contracted by 1.1 per cent after a 5 per cent increase in the previous quarter, due to lower shipments of both electronic and non-electronic NORX, IE Singapore said.