Electronics Shipments Show Recovery, But Geopolitical and Supply Chain Risks Remain
Singapore’s non-oil domestic exports (NODX) surprised analysts with a smaller-than-expected 0.1% year-on-year (yoy) decline in May, reflecting a recovery in electronics shipments driven by a global tech upswing. The value of key exports reached S$13.9 billion in May, matching April’s figure, according to data from Enterprise Singapore (EnterpriseSG).
This mild contraction marked the smallest in 20 months, a significant improvement from the previous month’s revised 9.6% drop. The performance in May exceeded the expectations of private-sector economists, who had forecasted a 1.1% decline, and it also showed a slowdown compared to the previous month’s steep decline.
On a seasonally adjusted basis, NODX fell by 0.1% in May, a reversal from the 7.3% growth in April. Electronics exports continued their recovery, though non-electronics exports experienced a downturn.
Economists remain optimistic about the prospects for Singapore’s exports in the second half of 2024, expecting the ongoing global tech upcycle to provide support. However, they caution that downside risks such as geopolitical conflicts and supply chain disruptions could hinder the recovery momentum.
As the global economy faces uncertainty, Singapore’s NODX performance is being closely watched, with the tech sector likely to play a critical role in sustaining export growth for the remainder of the year.
