Non-Oil Domestic Exports Decline Slows, Yet Geopolitical Tensions Pose Ongoing Risks
Singapore’s key exports experienced a decline of 13.2% year-on-year in September, a significant easing from the previous month’s 22.5% slump, according to data from Enterprise Singapore. This marks the 12th consecutive month of contraction for the country’s non-oil domestic exports (NODX), with both electronics and non-electronics exports continuing to fall.
Despite the overall decline, economists expressed cautious optimism, as the September performance exceeded expectations of a 15% contraction. On a seasonally adjusted monthly basis, NODX grew by 11.1%, reversing a 6.6% decrease in August. This growth was largely driven by a rebound in exports to key markets, including China, Hong Kong, and the US, with China showing a notable 26.2% year-on-year increase in exports.
However, the recovery remains fragile. The contraction in exports to several other top markets, including Taiwan, Indonesia, and Malaysia, deepened in September. Economists project a gradual recovery towards the year-end, but ongoing geopolitical tensions and tight monetary policies in major export destinations such as the US and the EU could dampen the pace of growth in the coming months.
