Singapore’s NODX recorded 1% growth, first time in 14 months

SINGAPORE: Singapore’s non-oil domestic exports (NODX) recorded 1% growth in November, marking the first upswing in over a year, The Edge Singapore reports.

Breaking down the export figures, NODX to major markets witnessed a mixed performance in November. Declines were noted in shipments to Taiwan, the European Union, and Indonesia.

On the flip side, exports to the US, China, Thailand, and Hong Kong experienced growth. However, these gains often remained below the monthly peaks observed before the economic downturn in 2022-2023.

In a previous statement, the Ministry of Trade and Industry expressed expectations that Singapore’s manufacturing and trade-related sectors would face challenges for the remainder of 2023 due to subdued external demand. Although the demand for global electronics remains sluggish, the Ministry did identify tentative signs that the downturn might be reaching a bottom.

Key numbers from Monday’s data reveal a nuanced picture. Non-oil domestic exports increased by 0.3% month-on-month, defying expectations of a 0.1% decline.

On a year-on-year basis, the growth was modest at 1%, falling slightly short of the anticipated 1.5% expansion. Notably, electronics exports declined 12.7% compared to the same period last year.

The November headline figure’s increase was primarily propelled by non-electronic products, with notable growth observed in total chemicals and pharmaceutical shipments. The figures suggest that while certain sectors face challenges, others are contributing positively to the overall export landscape.

The data, released on Monday, Dec 18, fell slightly short of the 1.5% gain predicted in a Bloomberg survey. Analysts attribute this expansion to a low base comparison with the same period last year, according to Enterprise Singapore.

While the export increase is a positive development, it does not necessarily indicate a robust recovery in external demand. Total trade for November saw an uptick, buoyed by export growth, although imports experienced a decline.

Despite the marginal improvement, the overall outlook for Singapore’s economy remains cautious, with trade being a pivotal factor in the city-state’s economic performance.

The Ministry of Trade and Industry anticipated Singapore’s economy to grow by approximately 1% this year, projecting a slightly broader range of 1%-3% expansion in the coming year. The cautious optimism is grounded in recognising that the global economic landscape presents challenges. /TISG