SINGAPORE - Singapore's non-oil domestic exports (Nodx) are expected to shrink 5 to 5.5 per cent this year on the back of lacklustre global growth - a larger contraction than the 3 to 4 per cent contraction previously forecast.
Nodx is expected to pick up next year in line with a stronger global economy, said trade agency IE Singapore, which has forecast a range of negative 1 per cent to 1 per cent for 2017.
IE Singapore's latest data also showed that Nodx shrank 5.4 per cent in the third quarter, dragged down by both electronic and non-electronic shipments.
Total merchandise trade declined by 5.0 per cent in the third quarter, following the 5.7 per cent contraction in the previous quarter, it said, while total services trade increased by 0.1 per cent to reach $97.7 billion, following the 2.3 per cent rise in the preceding quarter.
Oil trade contracted by 20.2 per cent in the third quarter of 2016, following the previous quarter's decrease of 24.9 per cent. Non-oil trade declined by 1.2 per cent in the third quarter, following the previous quarter's decrease of 0.5 per cent.
IE Singapore said domestic exports of electronic products contracted by 8.6 per cent in the third quarter, after the decline of 5.1 per cent in the previous quarter. The decrease in electronic Nodx can be attributed to lower domestic exports of personal computers, parts of personal computers and integrated circuits.
Non-electronic Nodx decreased by 3.9 per cent, attributed to lower domestic exports of petrochemicals, structures of ships and boats as well as civil engineering equipment parts.