A steep drop in non-oil domestic exports marks the tenth consecutive month of contraction
Singapore’s non-oil domestic exports (NODX) saw a sharp decline of 20.2% year-on-year in July 2023, a deepening slump compared to June’s 15.6% drop. This marks the 10th consecutive month of declining exports and surpasses economists’ expectations, which had predicted a 14.3% fall. The country’s key exports, including electronics and non-electronics, both recorded losses.
The overall value of NODX in July hit S$14 billion, down from S$14.5 billion in June, and well below the S$17.4 billion recorded during the same period in 2022. Electronics exports took a significant hit, with integrated circuits, PCs, and disk media products contributing to a 26.1% drop, up from 16% in June. Meanwhile, non-electronics exports declined by 18.5%, largely driven by losses in non-monetary gold, specialized machinery, and petrochemicals.
Exports to Singapore’s top markets, including the EU, Taiwan, and China, saw steep declines, particularly with shipments to China falling by 20.1%. Economists are concerned about the fragility of the recovery, particularly as China’s domestic demand continues to weaken.
Forecasts for NODX growth have been downgraded, with economists now projecting a contraction of 9% to 12% for the full year. Some expect further declines in the short term, but with a potential recovery later in the second half of 2023. Despite the downturn, exports to the US showed growth, with economists cautiously optimistic about a gradual improvement in shipments as global semiconductor sales and manufacturing activity recover.
