Weakness in Non-Electronics Exports and Ongoing Risks Lead to Revised Outlook
Singapore has revised its full-year Non-Oil Domestic Exports (NODX) forecast, lowering the growth range to 4-5% from the previous 4-6%. Data released by Enterprise Singapore on August 13 showed a 6.4% year-on-year decline in NODX for Q2, following a 3.4% decrease in Q1. This drop was partly due to a high base from the previous year, along with a decline in non-electronics exports, especially in the pharmaceutical sector.
Despite these setbacks, EnterpriseSG noted that there are key risks to the forecast, including the possibility of a weaker-than-expected economic recovery in the second half of 2024. However, the electronics sector is expected to support NODX growth, particularly driven by demand for AI servers and consumer devices. The outlook for the second half of the year remains cautiously optimistic, with high oil prices expected to provide additional support.
