SINGAPORE, July 17 — Singapore’s non-oil domestic exports fell 15.5 per cent in June from a year earlier, official data showed today, weighed down by declines in both electronic and non-electronic products.
Last month’s fall compared with a Reuters poll forecast of an 15.8 per cent drop, and extended the 14.8 per cent contraction seen in May.
Singapore’s economy narrowly avoided a technical recession like those seen in New Zealand and Germany, with second quarter preliminary estimates showing 0.3 per cent growth on a quarter-on-quarter basis. The first quarter was a 0.4 per cent quarter-on-quarter contraction.
A technical recession is defined as two consecutive quarters of contractions.
“Exports remain in the doldrums, with few signs of a meaningful turnaround,” Maybank economist Chua Hak Bin said.
Chua expects contraction in manufacturing and exports to continue over the next few months. Singapore’s industrial output in May fell 10.8 per cent year-on-year in an eighth consecutive contraction.
On a month-on-month seasonally adjusted basis, non-oil domestic exports grew 5.4 per cent in June, following May’s 14.6 per cent decline. That was lower than analysts’ predictions for a 5.9 per cent decline.
Non-domestic oil exports to Singapore’s top 10 markets declined as a whole last month.
Exports to neighbouring Malaysia contracted 30.7 per cent year-on-year last month due to lower shipments of integrated circuits, articles of plastic and specialised machinery.
Shipments to Indonesia declined 35.7 per cent after drops in exports of petrochemicals, plastic plates and sheets and primary chemicals. Exports to China grew 3.1 per cent in June after posting a 3.7 per cent growth in May.
“China’s reopening is finally giving exports a modest boost,” Chua said. — Reuters
