SINGAPORE, Aug 18 — Singapore’s non-oil domestic exports fell 4.6 per cent in July from the same month a year earlier, government data showed on Monday, weaker than analysts’ estimates as pharmaceuticals led a drop in non-electronics shipments.

The fall compared with a Reuters poll forecast for annual contraction of 1.8 per cent, and followed a revised 12.9 per cent rise in June.

Non-oil domestic exports to the US, China and Indonesia declined in July, but rose to the EU, Taiwan, South Korea and Hong Kong.

After the economy performed better-than-expected in the first half of 2025, the government last week raised its full-year growth forecast for 2025 to 1.5 per cent to 2.5 per cent from 0.0 per cent to 2.0 per cent, having cut the forecast earlier this year after the announcement of US tariffs.

Despite having a free-trade agreement and running a trade deficit with the US, the wealthy financial hub has still been slapped with a 10 per cent tariff rate by Washington.

Authorities have warned that growth is likely to slow in the second half of 2025 as export and production frontloading to beat the US tariffs tapers off.

Last week, Enterprise Singapore kept its forecast for non-oil exports at growth of 1 per cent to 3 per cent this year, saying it expected some weakness in the second half after a stronger-than-expected start to 2025.

On Sunday, Prime Minister Lawrence Wong said in his national day rally speech that he took little comfort from the baseline 10 per cent tariff the US had imposed on Singapore goods.

“Because no one knows if — or when — the US might raise the baseline. Or set higher tariffs on specific industries like pharmaceuticals and semiconductors,” he said.

“What we do know is that there will be more trade barriers in the world. That means small and open economies like us will feel the squeeze.” — Reuters