SINGAPORE, March 17 ― Singapore's exports in February fell more than expected as momentum in the global economy remained modest and as a slowdown in China took a heavy toll, adding to expectations that the central bank may ease monetary policy next month.

Non-oil domestic exports (NODX) slid 9.7 per cent in February from a year earlier, trade agency International Enterprise Singapore said today in a statement. That compared with a 0.4 per cent contraction forecast in a Reuters poll, and 4.3 per cent growth in January.

The disappointing performance in February was partially due to the Lunar New Year holidays, which fell in January in 2014.

On a month-on-month seasonally adjusted basis, NODX declined 9.4 per cent in February, again missing a forecast of 0.7 per cent slide.

“This is in line with other disappointing data outcomes and continues to suggest Singapore is running at below trend growth,” said Jonathan Cavenagh, senior FX strategist with Westpac in Singapore.

That raises the risk of further monetary easing by the central bank in April, Cavenagh said.

A Reuters poll taken earlier this month showed the Monetary Authority of Singapore is expected to ease policy at its semi-annual meeting in April to tackle a slowing economy and inflation.

The Singapore dollar pulled back after the data, giving up all of its earlier gains.

Non-oil domestic exports to China fell 22.7 per cent in February from a year earlier, compared to 4.5 per cent growth in January. Shipments to China were hit by falls in petrochemicals, primary chemicals and disk media products, the trade agency said.

Imports of the world's second-largest economy fell more than 20 per cent in the first two months of the year, indicating persistent weakness in the Asian giant ― Singapore's top export market ― is hurting the city state.

Shipments to the European Union eased 2.8 per cent after an 11.9 per cent expansion in the previous month. Sales to the United States gained 7.5 per cent, from a 3.9 per cent increase in January.

Exports of electronics in February fell 12.5 per cent from a year earlier, after increasing 5.0 per cent in January.

The sector is a key driver of Singapore exports, but it has been lagging regional competitors such as South Korea and Taiwan due to stiff competition and a lack of popular high-tech products including smartphones.

Singapore's manufacturing activity contracted for the third straight month in February with the key electronics index shrinking for the first time in more than two years. ― Reuters