Gold and Electronics Lead the Growth Despite Global Challenges
Singapore’s exports continued to show strength in March, with a 7.7% year-on-year increase in non-oil domestic exports (NODX), marking the 16th consecutive month of growth. While the growth rate eased from February’s 9.4%, it still surpassed the forecasted 1.6% increase, according to a Bloomberg poll.
The surge in exports was primarily driven by non-monetary gold, which saw a remarkable 86.5% increase, along with strong performances from pharmaceuticals (17.9%) and measuring instruments (19.5%). Electronics exports also remained robust, growing by 11.5%, nearly in line with the previous month’s 11.6% expansion.
However, the growth in real NODX fell by 3.4% compared to a year earlier, marking its second consecutive month of decline. This contraction was attributed to manufacturing capacity limits and ongoing supply chain disruptions, exacerbated by the war in Ukraine and China’s COVID-19 lockdowns.
The United States emerged as a major driver of NODX demand, with a significant 68.1% rise in shipments, particularly in gold, pharmaceuticals, and machinery. In contrast, exports to emerging markets, particularly in Southeast Asia, the Caribbean, and Latin America, shrank by nearly 29%.
Non-oil re-exports, a gauge of wholesale trade, increased by 11.4%, although this was a slowdown from the previous month’s 19.5% growth. Total trade for March grew by 17.6%, driven by both oil and electronics exports.
Despite strong export figures, economists caution that global trade may face continued headwinds due to supply chain disruptions, China’s strict COVID policies, and inflationary pressures. The export momentum is expected to remain weak in the second quarter of the year.
