Singapore’s key exports experienced a significant surge in July, surpassing expectations and signaling a positive shift in the country’s trade landscape. According to recent data released by Enterprise Singapore, non-oil domestic exports (Nodx) grew by an impressive 15.7% year-on-year in July, a stark contrast to the 8.8% contraction recorded in June.
The unexpected growth in exports was largely driven by the strong performance of both electronics and non-electronics shipments. This growth in July far exceeded the 1.2% expansion forecasted by economists in a Bloomberg poll. Enterprise Singapore expressed cautious optimism for the recovery in the second half of the year, despite acknowledging key downside risks that could impact global export recovery in the remainder of 2024.
The trade agency highlighted the role of electronics in driving the export growth, particularly citing the recovery in artificial intelligence (AI) servers and consumer devices. Additionally, the surge in global chip sales further supported the electronics sector’s expansion. The increase in non-monetary gold exports also played a significant role in boosting overall Nodx growth in July.
On a month-on-month basis, Nodx expanded by 12.2% in July, reaching US$15.4 billion, following a slight decline in June. The growth in exports was accompanied by a 13.7% increase in total trade, with both exports and imports showing positive momentum.
While electronics Nodx expanded by 16.5% year-on-year in July, reversing a previous decline, non-electronics shipments also saw a notable increase of 15.5%. Key contributors to the growth in exports included the United States, Malaysia, and China.
Analysts remain optimistic about Singapore’s export recovery, anticipating a gradual improvement supported by stronger external demand. The broadening of electronics shipment growth beyond integrated circuits signifies a positive trend for the electronics sector, with experts foreseeing ongoing benefits for overall Nodx.
Overall, the latest trade data for July indicates a promising outlook for Singapore’s exports, reflecting a robust recovery in key sectors and setting a positive tone for the country’s trade performance in the coming months.
