Singapore’s Non-Oil Domestic Exports: A Steep Decline in Q1 2024
Non-electronic exports fared no better, declining by 23.2% year-on-year in March. This extends the 1.7% drop observed in February. Notable declines occurred in pharmaceuticals, structures of ships and boats, and non-monetary gold, which fell by 70.3%, 99.8%, and 49.1%, respectively.
The Lion City’s economic landscape has encountered a significant jolt as non-oil domestic exports (NODX) plummeted by a staggering 20.7% during the first quarter of 2024. This sharp contraction, driven by both electronic and non-electronic shipments, underscores the challenges faced by Singapore’s trade sector.
The Numbers Unveiled
According to data released by Enterprise Singapore (EnterpriseSG), NODX experienced a precipitous decline in March, echoing the broader economic headwinds. This downturn surpassed analysts’ expectations, with a 7.4% contraction forecast by Bloomberg polls. The situation follows a marginal 0.2% decrease in February and a robust 16.7% year-on-year expansion in January.
Electronic and Non-Electronic Woes
Electronic product exports bore the brunt of the downturn, contracting by 9.4% year-on-year in March. This decline followed a 5.2% increase the previous month. Key contributors to this electronic slump included telecommunications equipment, integrated circuits (ICs), and diodes and transistors, which witnessed declines of 38.8%, 8%, and 11%, respectively.
Non-electronic exports fared no better, declining by 23.2% year-on-year in March. This extends the 1.7% drop observed in February. Notable declines occurred in pharmaceuticals, structures of ships and boats, and non-monetary gold, which fell by 70.3%, 99.8%, and 49.1%, respectively.
Market-Specific Trends
NODX to various markets exhibited divergent trajectories. While NODX to China, Hong Kong, and Taiwan saw modest increases, the overall trend was downward. The United States, the European Union, and Japan experienced substantial contractions of 50.2%, 45.4%, and 36.5%, respectively.
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Asir Fatagar
Broader Economic Context
In tandem with the export woes, Singapore’s total trade declined by 1.8% year-on-year in March, following a 3.5% increase in February. Both exports and imports experienced setbacks, with exports falling by 3.4% and imports by a marginal 0.1%.
Last week, advance estimates from the Ministry of Trade and Industry revealed that Singapore’s economy grew 2.7% year-on-year in the first quarter of 2024. This outpaced the 2.2% growth recorded in the final quarter of 2023. On a quarter-on-quarter seasonally adjusted basis, Singapore’s economy expanded by 0.1%, extending the 1.2% growth in Q4 2023.
The Road Ahead
As Singapore grapples with external uncertainties, including global supply chain disruptions and geopolitical tensions, policymakers and businesses must navigate these choppy waters. The NODX figures serve as a stark reminder that resilience and adaptability remain critical for Singapore’s economic recovery.